During July, the following changes in inventory item 100 tookplace:
July 1 Balance 600 units @ $20
8 Sold 400 units @ $40
10 Purchased 1,000 units @ $22
14 Sold 700 units @ $40
24 Purchased 700 units @ $24
What is the cost of goods sold and the ending inventory for item100 under the following methods? (Show calculations.)
(a) LIFO, FIFO and Average Cost under periodic
(b) LIFO, FIFO and Average Cost under perpetual
During July, the following changes in inventory item 100 tookplace:
July 1 Balance 600 units @ $20
8 Sold 400 units @ $40
10 Purchased 1,000 units @ $22
14 Sold 700 units @ $40
24 Purchased 700 units @ $24
What is the cost of goods sold and the ending inventory for item100 under the following methods? (Show calculations.)
(a) LIFO, FIFO and Average Cost under periodic
(b) LIFO, FIFO and Average Cost under perpetual
Related questions
Assume that Dunk Coffee Shop completed the following periodic inventory transactions for a line of merchandiseâ inventory:
| Jun. | 1 | Beginning merchandise inventory | 25 | units @ | $22 | each |
| 12 | Purchase | 3 | units @ | $24 | each | |
| 20 | Sale | 14 | units @ | $34 | each | |
| 24 | Purchase | 17 | units @ | $28 | each | |
| 29 | Sale | 20 | units @ | $34 | each |
| 1. | Compute ending merchandiseâ inventory, cost of goodsâ sold, and gross profit using the FIFO inventory costing method. |
| 2. | Compute ending merchandiseâ inventory, cost of goodsâ sold, and gross profit using the LIFO inventory costing method. |
| 3. | Compute ending merchandiseâ inventory, cost of goodsâ sold, and gross profit using theâ weighted-average inventory costing method.â (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearestâ dollar.) |
QUESTION: Compute ending merchandiseâ inventory, cost of goodsâ sold, and gross profit using theâ (1) FIFO inventory costingâ method, (2) LIFO inventory costingâ method, andâ (3) weighted-average inventory costing method.â (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearestâ dollar.)
Begin by determining ending merchandise inventory and cost of goods sold under each of the three methods.
| Requirement 1. | ||
| FIFO | ||
| Plus: | ||
| Less: | ||
| Cost of goods sold | ||
| Requirement 2. |
| LIFO |
| Requirement 3. |
| Weighted-Average |
Now compute the gross profit under each inventory costing method.
| Requirement 1. | ||
| FIFO | ||
| Sales Revenue | ||
| Cost of Goods Sold | ||
| Gross Profit | ||
| Requirement 2. |
| LIFO |
| . | ||||
| Requirement 3. |
| Weighted-Average |
