ACCT 2001 Chapter : Accounting P6 5A
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WoodwardIndustries is a retailer. Assume that there are no credittransactions; all amounts are settled in cash. The followinginformation for the month of January 2017. | |||||||||
Unit Cost or | |||||||||
Date | Description | Quantity | Selling Price | ||||||
Dec. 31 | Ending inventory | 172 | $22 | ||||||
Jan. 2 | Purchase | 103 | 24 | ||||||
Jan. 6 | Sale | 179 | 41 | ||||||
Jan. 9 | Purchase | 68 | 26 | ||||||
Jan. 10 | Sale | 48 | 46 | ||||||
Jan. 23 | Purchase | 110 | 27 | ||||||
Jan. 30 | Sale | 132 | 49 | ||||||
a) | Please calculate (fill in the blanks) GOCS andEnding Inventory using various inventory methods, under theperpetual costing system: | ||||||||
Please put your final answers in the designatedcells below. You can you the next tab (worksheet) for calculationpurposes. | |||||||||
COGS | Ending Inventory | Gross Profit | |||||||
Perpetual | FIFO | ||||||||
LIFO | |||||||||
Weighted Average | |||||||||
Note: Gross Profit = Revenue - COGS | |||||||||
Assume that Dunk Coffee Shop completed the following periodic inventory transactions for a line of merchandise​ 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 merchandise​ inventory, cost of goods​ sold, and gross profit using the FIFO inventory costing method. |
2. | Compute ending merchandise​ inventory, cost of goods​ sold, and gross profit using the LIFO inventory costing method. |
3. | Compute ending merchandise​ inventory, cost of goods​ sold, and gross profit using the​ weighted-average inventory costing method.​ (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest​ dollar.) |
QUESTION: Compute ending merchandise​ inventory, cost of goods​ sold, and gross profit using the​ (1) FIFO inventory costing​ method, (2) LIFO inventory costing​ method, and​ (3) weighted-average inventory costing method.​ (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest​ 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 |