A company uses a periodic inventory system and reports purchases and sales data for its only product. Units Acquired at Cost 160 units @ $ 8.50 = $ 1,360 100 units @ $7.50 = 240 units @ $7.00- 500 units Date April 1 April 3 April 18 April 22 April 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals 750 1,680 $ 3,790 Units sold at Retail 120 units @ $17.50 120 units @ $17.50 240 units Required: 1. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO. 2. Compute gross profit for the four inventory methods.
A company uses a periodic inventory system and reports purchases and sales data for its only product. Units Acquired at Cost 160 units @ $ 8.50 = $ 1,360 100 units @ $7.50 = 240 units @ $7.00- 500 units Date April 1 April 3 April 18 April 22 April 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals 750 1,680 $ 3,790 Units sold at Retail 120 units @ $17.50 120 units @ $17.50 240 units Required: 1. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO. 2. Compute gross profit for the four inventory methods.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Just Requierement 1D
Transcribed Image Text:A company uses a periodic inventory system and reports purchases and sales data for its only product.
Units Acquired at Cost
@ $8.50 =
@ $7.50 =
Date
April 1
April 3
April 18
April 22
April 30
Req 1A
Enter answers in the tabs below.
Activities
Beginning inventory
Sales
Purchase
Sales
Purchase
Totals
Beginning inventory
Purchases:
April 18
April 30
Total
Req 1B
Required:
1. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c)
FIFO, and (d) LIFO.
2. Compute gross profit for the four inventory methods.
Req1C
Number of Cost per
units
unit
160
100
240
500
160 units
100 units
7.50
7.00
240 units @ $7.00 =
500 units
Req1D
Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.
d) Periodic LIFO
Cost of Goods Available for Sale
Cost of Goods Sold
Goods
Available
Cost per
unit
for Sale
8.50 $ 1,360
Req 2
750
1,680
$ 3,790
$ 1,360
Number of
units sold
750
0
Units sold at Retail
120 units @ $ 17.50
120 units @ $17.50
1,680
$ 3,790 240 units
$
Cost of
Goods
Sold
0
Ending Inventory
Number of
units in
inventory
Cost per
unit
Ending
Inventory
$
0
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