Subject: Financial Accounting II i need the answer quickly Q.1 IBM incorporation uses...
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Accounting
Subject: Financial Accounting II
i need the answer quickly
Q.1 IBM incorporation uses a periodic inventory system. The inventory quantities purchases, and sales of this unit for the most recent year are shown below. Number of Units Cost Per Unit Total Cost Inventory Jan. 1 2,000 $15.00 $30,000 Purchases April, 10 1000 $15.50 $15,500 Purchases June 15 500 $16.30 $8,150 Goods available for sale 3500 $53,650 Units sold during the year 3000 Inventory, December 31 500 Required: a) Using Periodic costing procedure, compute the cost of the December 31 inventory and the cost of goods sold for units during the year under each of the following: (3+3+3) 1. First-in, first out 2. Last-in, first out 3. Average Cost b) Which of the three inventory pricing methods provides the most realistic balance sheet valuation of inventory in light of the current replacement cost of the units? Does this same method also produce the most realistic measure of income in light of the costs being incurred by IBM to replace the units when they are sold? Explain. (03) c) Which method is more suitable for company perpetual inventory system or periodic inventory system, State with reasons. (03)
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