Question

Mist, Inc. uses a PERIODIC inventory system and has the following transactions for one of its inventory items during 2020: Beginning Inventory 108 units @ $51 per unit Purchases Purchase 1 on 3/11/20 60 units @ $53 per unit Purchase 2 on 10/18/20 109 units @ $55 per unit Sales Sale 1 on 3/15/20 100 units @ $78 per unit Sale 2 on 10/22/20 135 units @ $78 per unit All units sold on 3/15/20 were from beginning inventory. The 10/22/20 sale included 50 units from the 3/11/20 purchase and 85 units from the 10/18/20 purchase. Show how Mist's Balance Sheet and Income Statement would differ under each of the inventory cost flow assumptions. Compute Ending Inventory, COGS and Gross Profit under Specific Identification, Weighted Average Cost, FIFO and LIFO. Fill in your answers on the table. You must round the weighted average cost to two decimal points before using it in your calculations; however, you should NOT round any of the answers that you put into the table below. Specific Identification First-In, First-Out Last-In, First-Out Weighted Average Cost 12/31/20 Balance Sheet Ending Inventory 2020 Income Statement Cost of Goods Sold Gross Profit

Answer 1

Answer is given below