Problem (32 points) Willow Corporation uses a PERIODIC inventory system. Willow had the following inventory purchases and sales during 2022:
2022 Beginning Inventory (bought in 2021): 70 units @ $44 per unit
Purchases:
Purchase 1 on 1/20/22: 130 units @ $48 per unit
Purchase 2 on 6/24/22: 300 units @ $52 per unit
Sales:
Sale 1 on 3/12/22: 180 units @ $100 per unit
Sale 2 on 10/15/22: 260 units @ $100 per unit
Of the units sold on 3/12/22, 50 came from beginning inventory and 130 were from the 1/20/22 purchase. All units sold on 10/15/22 were from the 6/24/22 purchase.
Show how Willow's Balance Sheet and Income Statement would look under each of the inventory cost flow assumptions. Compute Ending Inventory, Sales, COGS, and Gross Profit under Specific Identification, Weighted Average Cost, FIFO, and LIFO. Fill in your answers on the table below. SHOW YOUR WORK. Round per unit cost to the nearest cent.
Specific Identification
Weighted Average
FIFO
LIFO
12/31/22 Balance Sheet
Inventory
2022 Income Statement
Sales
Cost of Goods Sold
Gross Profit
COGAS units = 70u + 130u + 300u = 500 units