Date Jan. 1 Beginning inventory Jan. 3 Sales Feb. 14 Purchase' Feb. 15 Sales June 30 Purchase Sales Purchase Totals Activities Nov. 6 Nov. 19 Units Acquired at Cost 70 units @ $2$ 140 94 units @ $3= $ 282 120 units @ $4$ 480 34 units@ $5= $ 170 318 units $1,072 Required: The company uses a periodic inventory system. Units Sold at Retail 42 units @ $8 86 units @ $8 94 units @ $8 222 units a. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. b. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. c. Compute the gross margin for each method.
Date Jan. 1 Beginning inventory Jan. 3 Sales Feb. 14 Purchase' Feb. 15 Sales June 30 Purchase Sales Purchase Totals Activities Nov. 6 Nov. 19 Units Acquired at Cost 70 units @ $2$ 140 94 units @ $3= $ 282 120 units @ $4$ 480 34 units@ $5= $ 170 318 units $1,072 Required: The company uses a periodic inventory system. Units Sold at Retail 42 units @ $8 86 units @ $8 94 units @ $8 222 units a. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. b. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. c. Compute the gross margin for each method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Activities
Date
Jan. 1 Beginning inventory
Jan. 3 Sales
Feb. 14
Purchase"
Feb. 15
Sales
June 30
Purchase.
Nov. 6 Sales
Nov. 19 Purchase
Totals
Units Acquired at Cost
70 units @ $2= $ 140
94 units @ $3= $
282
120 units @ $4 = $
480
170
34 units@ $5= $
318 units
$1,072
Required:
The company uses a periodic inventory system.
Units Sold at
Retail
42 units @ $8
86 units @ $8
94 units @ $8
222 units
a. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
b. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
c. Compute the gross margin for each method.
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