ABC and XYZ are identical except that ABC uses the first-in-first-out (i.e., FIFO) costflow assumption when accounting for its inventory whereas XYZ uses the last-in-firstout (i.e., LIFO) cost-flow assumption. In the schedule shown below, you are providedwith information by year about: (1) the numbers of units purchased (i.e., Units
Purchased) by each company; (2) the cost that each company paid for each unit it
purchased (i.e., Cost per Unit); (3) the number of units that each company sold (i.e., Units
Sold); and (4) the per unit sales price that each company charged its customers (i.e., Price
per Unit). You are provided with only one schedule because the two companies are
identical except for the cost-flow assumptions that they use when accounting for their
inventory.
Year one
Year two
Year three
Year four
Units Purchased
100
130
145
40
Cost per Unit
1.00
1.50
1.90
2.00
Units Sold
80
125
130
80
Price per Unit
1.75
2.63
3.33
3.50
Note that there are a lot of questions in Part 2. However, if you set up a schedule and a
general approach, it shouldn’t take you too long to answer all of them. In addition, I
suggest that you to first attempt to answer all the questions on your own. Then, meet
with other classmates and work together.
To elaborate on the above, I would start with the following schedule:
Year One
Beginning
Inventory
Plus: Purchases
Minus: Ending
Inventory
Cost of Goods sold
Revenues
Minus: Cost of
Goods Sold
Gross Profit
Year Two
Year Three
Year Four
Next, I would fill in the blanks. For example, I would calculate beginning inventory for
year one, then purchases for year one, then ending inventory, then cost of goods sold,
etc. And, I would repeat this for each year until the schedule is complete. Then, I would
answer the questions in Canvas.
When entering your numerical answers in Canvas:
•
•
Always enter a number, e.g., if the answer is zero, you would enter 0 (i.e.,
the number 0).
Round all of your answers to the nearest integer. For example, if the
correct answer is 1.49, you would enter 1. However, if the correct answer
is 1.51, you would enter 2.
Flag question: Question 2
Question 2
What was the carrying value of ABC’s inventory at the beginning of year one? Round
your answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 3
Question 3
What was the dollar value of the units purchased by ABC during year one? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 4
Question 4
What was the carrying value of ABC’s inventory at the end of year one? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 5
Question 5
What was ABC’s cost of goods sold for year one? Round your answer to the nearest
integer. For example, if the correct answer is 1.49, you would enter 1. However, if the
correct answer is 1.51, you would enter 2.
Flag question: Question 6
Question 6
What was ABC’s revenue for year one? Round your answer to the nearest integer. For
example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 7
Question 7
What was ABC’s gross profit for year one? Round your answer to the nearest integer.
For example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 8
Question 8
What was the dollar value of the units purchased by ABC during year two? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 9
Question 9
What was the carrying value of ABC’s inventory at the end of year two? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 10
Question 10
What was ABC’s cost of goods sold for year two? Round your answer to the nearest
integer. For example, if the correct answer is 1.49, you would enter 1. However, if the
correct answer is 1.51, you would enter 2.
Flag question: Question 11
Question 11
What was ABC’s revenue for year two? Round your answer to the nearest integer. For
example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 12
Question 12
What was ABC’s gross profit for year two? Round your answer to the nearest integer.
For example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 13
Question 13
What was the dollar value of the units purchased by ABC during year three? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 14
Question 14
What was the carrying value of ABC’s inventory at the end of year three? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 15
Question 15
What was ABC’s cost of goods sold for year three? Round your answer to the nearest
integer. For example, if the correct answer is 1.49, you would enter 1. However, if the
correct answer is 1.51, you would enter 2.
Flag question: Question 16
Question 16
What was ABC’s revenue for year three? Round your answer to the nearest integer. For
example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 17
Question 17
What was ABC’s gross profit for year three? Round your answer to the nearest integer.
For example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 18
Question 18
What was the dollar value of the units purchased by ABC during year four? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 19
Question 19
What was the carrying value of ABC’s inventory at the end of year four? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 20
Question 20
What was ABC’s cost of goods sold for year four? Round your answer to the nearest
integer. For example, if the correct answer is 1.49, you would enter 1. However, if the
correct answer is 1.51, you would enter 2.
Flag question: Question 21
Question 21
What was ABC’s revenue for year four? Round your answer to the nearest integer. For
example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 22
Question 22
What was ABC’s gross profit for year four? Round your answer to the nearest integer.
For example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 23
Question 23
What was the carrying value of XYZ’s inventory at the beginning of year one? Round
your answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 24
Question 24
What was the dollar value of the units purchased by XYZ during year one? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 25
Question 25
What was the carrying value of XYZ’s inventory at the end of year one? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 26
Question 26
What was XYZ’s cost of goods sold for year one? Round your answer to the nearest
integer. For example, if the correct answer is 1.49, you would enter 1. However, if the
correct answer is 1.51, you would enter 2.
Flag question: Question 27
Question 27
What was XYZ’s revenue for year one? Round your answer to the nearest integer. For
example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 28
Question 28
What was XYZ’s gross profit for year one? Round your answer to the nearest integer.
For example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 29
Question 29
What was the dollar value of the units purchased by XYZ during year two? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 30
Question 30
What was the carrying value of XYZ’s inventory at the end of year two? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 31
Question 31
What was XYZ’s cost of goods sold for year two? Round your answer to the nearest
integer. For example, if the correct answer is 1.49, you would enter 1. However, if the
correct answer is 1.51, you would enter 2.
Flag question: Question 32
Question 32
What was XYZ’s revenue for year two? Round your answer to the nearest integer. For
example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 33
Question 33
What was XYZ’s gross profit for year two? Round your answer to the nearest integer.
For example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 34
Question 34
What was the dollar value of the units purchased by XYZ during year three? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 35
Question 35
What was the carrying value of XYZ’s inventory at the end of year three? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 36
Question 36
What was XYZ’s cost of goods sold for year three? Round your answer to the nearest
integer. For example, if the correct answer is 1.49, you would enter 1. However, if the
correct answer is 1.51, you would enter 2.
Flag question: Question 37
Question 37
What was XYZ’s revenue for year three? Round your answer to the nearest integer. For
example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 38
Question 38
What was XYZ’s gross profit for year three? Round your answer to the nearest integer.
For example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 39
Question 39
What was the dollar value of the units purchased by XYZ during year four? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 40
Question 40
What was the carrying value of XYZ’s inventory at the end of year four? Round your
answer to the nearest integer. For example, if the correct answer is 1.49, you would
enter 1. However, if the correct answer is 1.51, you would enter 2.
Flag question: Question 41
Question 41
What was XYZ’s cost of goods sold for year four? Round your answer to the nearest
integer. For example, if the correct answer is 1.49, you would enter 1. However, if the
correct answer is 1.51, you would enter 2.
Flag question: Question 42
Question 42
What was XYZ’s revenue for year four? Round your answer to the nearest integer. For
example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 43
Question 43
What was XYZ’s gross profit for year four? Round your answer to the nearest integer.
For example, if the correct answer is 1.49, you would enter 1. However, if the correct
answer is 1.51, you would enter 2.
Flag question: Question 44
Question 44
What was the difference between ABC’s retained earnings at the end of year four and
XYZ’s retained earnings at the end of year four? Round your answer to the nearest
integer. For example, if the correct answer is 1.49, you would enter 1. However, if the
correct answer is 1.51, you would enter 2.
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