Inventory information for Part 311 of Crane Corp. discloses the following information for the month of June.June 1Balance298 units @ $10June 10Sold199 units @ $2411Purchased797 units @ $1215Sold497 units @ $2620Purchased505 units @ $1327Sold295 units @ $28(a)Your answer is correct.Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and(2) FIFO.(1)(2)LIFOFIFOCost of Goods Sold2$12397$11296Ending Inventory2$6712$7813eTextbook and MediaAttempts: 2 of 5 used(b)Your answer is correct.Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the valueof the ending inventory at LIFO?The ending inventory at LIFO$7320eTextbook and MediaAttempts: 1 of 5 used(c)Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the grossprofit if the inventory is valued at FIFO?Gross Profit (FIFO)$

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Description: Inventory information for Part 311 of Crane Corp. discloses the following information for the month of June.June 1Balance298 units @ $10June 10Sold199 units @ $2411Purchased797 units @ $1215Sold497 units @ $2620Purchased505 units @ $1327Sold295 unit

A perpetual inventory system is a method of inventory management that records real-time transactions…

Answered: Assuming that the perpetual inventory…

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Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO? Gross Profit (FIFO) 2$

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

Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Inventory information for Part 311 of Crane Corp. discloses the following information for the month of June.
June 1
Balance
298 units @ $10
June 10
Sold
199 units @ $24
11
Purchased
797 units @ $12
15
Sold
497 units @ $26
20
Purchased
505 units @ $13
27
Sold
295 units @ $28
(a)
Your answer is correct.
Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and
(2) FIFO.
(1)
(2)
LIFO
FIFO
Cost of Goods Sold
2$
12397
$
11296
Ending Inventory
2$
6712
$
7813
eTextbook and Media
Attempts: 2 of 5 used
(b)
Your answer is correct.
Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value
of the ending inventory at LIFO?
The ending inventory at LIFO
$
7320
eTextbook and Media
Attempts: 1 of 5 used
(c)
Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross
profit if the inventory is valued at FIFO?
Gross Profit (FIFO)
$

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