1) During 2021, a company sells 30 units of inventory at $60. The company has the following inventory purchase transactions for 2021: Date Jan. 1 Sep. 8 Transaction Beginning inventory Purchase Number of Units 25 20 45 Unit Cost $50 55 Total Cost $1,250 1,100 $2,350 Calculate ending inventory and cost of goods sold and gross profit for 2021 assuming the company uses both FIFO and LIFO.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
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1) During 2021, a company sells 30 units of inventory at $60. The company has the following
inventory purchase transactions for 2021:
Date
Jan. 1
Sep. 8
Transaction
Beginning inventory
Purchase
Number of
Units
25
20
45
Unit Cost
$50
55
Total Cost
$1,250
1,100
$2,350
Calculate ending inventory and cost of goods sold and gross profit for 2021 assuming the
company uses both FIFO and LIFO.
Transcribed Image Text:1) During 2021, a company sells 30 units of inventory at $60. The company has the following inventory purchase transactions for 2021: Date Jan. 1 Sep. 8 Transaction Beginning inventory Purchase Number of Units 25 20 45 Unit Cost $50 55 Total Cost $1,250 1,100 $2,350 Calculate ending inventory and cost of goods sold and gross profit for 2021 assuming the company uses both FIFO and LIFO.
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