Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 1 decimal place, e.g. 51.2%.) LIFO FIFO AVE Gross profit % rate eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) Compare the results for the three cost flow assumptions and answer the following questions. In this period of rising prices, gives the highest cost of goods sold and the gives the lowest cost of goods sold and the gross profit.

Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 1 decimal place, e.g. 51.2%.) LIFO FIFO AVE Gross profit % rate eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) Compare the results for the three cost flow assumptions and answer the following questions. In this period of rising prices, gives the highest cost of goods sold and the gives the lowest cost of goods sold and the gross profit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

(a3)
Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3)
Average-cost. (Round answers to 1 decimal place, e.g. 51.2%.)
LIFO
FIFO
AVE
Gross
profit
%
rate
eTextbook and Media
Save for Later
Attempts: 0 of 3 used
Submit Answer
(b)
Compare the results for the three cost flow assumptions and answer the following
questions.
In this period of rising prices,
gives the highest cost of goods sold and the
gives the lowest cost of goods sold and the
gross profit.

You are provided with the following information for Bonita Inc. for the month ended June 30,
2020. Bonita uses the periodic method for inventory.
Unit Cost or
Date
Description
Quantity
Selling Price
June
1
Beginning inventory
41
$39
June
4
Purchase
138
42
June
10
Sale
113
73
June
11
Sale return
13
73
June
18
Purchase
52
45
June
18
Purchase return
8.
45
June
25
Sale
62
79
June
28
Purchase
33
50

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