ac1420 week 3 project part 1

Title: Creating a Balance Sheet and Evaluating Inventory

You will be provided with financial information about a fictional company. You will have to determine what information is relevant for Project Parts 1 and 2.

Task 1: Create a balance sheet from a trial balance for a given scenario. Make sure you classify the accounts appropriately as current or non-current.

Click here to download the trial balance.

Task 2: Perform inventory valuations

using LIFO, FIFO, and weighted average

methods based on the following

information. Explain the impact of each

method on the cost of goods sold and

ending inventory.

The company imports microwaves from a

supplier in China for the US market. At

the end of the first quarter, 100

microwaves are in stock. The company

purchased a total of 400 microwaves

during the quarter at various prices:

January: 100 units @ $75

February: 250 units @ $83

March: 50 units @ $87

The company had no inventory at the

beginning of the quarter.

Task 3: If the company’s goal is to

maximize net income, which evaluation

method will you use and why?

Use the ITT Tech Virtual Library to

support your answer with facts.

Submission Requirements:

Click here to download the Task 1

template for calculation.

Click here to download the Task 2 template for calculation.