Class, listed below is an Inventory Cost Flow problem that I would like everyone to work on this week.
| Class, listed below is an Inventory Cost Flow problem that I would like everyone to work on this week. Please Note: Be sure to post your answer for only ONE part of the inventory problem. However, you are encouraged to comment on what everyone else posts if you feel that their answer is incorrect. Barry’s Bats Unlimited Inc. is a large international merchandising organization. Below is information concerning one of their products, baseball bats: Date Transaction Quantity Price/Cost November 2 Beg. Inventory 30 @ $ 50.00 November 5 Purchase 40 @ $ 60.00 November 9 Sale 50 @ $ 150.00 November 16 Purchase 60 @ $ 70.00 November 27 Sale 30 @ $ 200.00 Additional Information: Barry’s Bats Unlimited Inc. has decided to use the periodic inventory system. Required: Complete the following schedule, however, post your answers for only ONE of the inventory methods in the Threaded Discussion Area this week. Inventory Method Ending Inventory Cost of Goods Sold Gross Profit a. FIFO _____________ ________________ __________ b. Average Cost __________ ________________ __________ c. LIFO ___________ ________________ __________ II. Post an answer for only ONE of the following questions. However, please feel free to comment on what everyone else posts about the questions below. 1. Which inventory method would require Barry’s Bats Unlimited Incorporated to pay the lowest amount of income taxes? __________________ 2. Which inventory method would provide the highest gross profit for Barry’s Bats Unlimited Incorporated? ___________________ 3. Which inventory method would provide the lowest ending inventory for Barry’s Bats Unlimited Incorporated? __________________ 4. Which inventory method would you select if you were the manager of Barry’s Bats Unlimited Incorporated? Why? 5. Which inventory method would you select if you were the owner of Barry’s Bats Unlimited Incorporated? Why? 6. Which inventory method would produce the highest cash flow for Barry’s Bats Unlimited Incorporated? |
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