Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 60 $52 $ 3,120 Apr. 7 Jul. 16 Oct. 6 Purchase 140 54 7,560 Purchase 210 57 11,970 Purchase 120 58 6,960 $29,610 530

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

During the year, TRC Corporation has the following inventory transactions.

For the entire year, the company sells 450 units of inventory for $70 each.

Required:
1. Using FIFO, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue, and (d) gross profit.
2. Using LIFO, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue, and (d) gross profit.
3. Using weighted-average cost, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue, and (d) gross profit.
4. Determine which method will result in higher profitability when inventory costs are rising.

Date
Transaction
Number of Units
Unit Cost
Total Cost
Jan. 1
Beginning inventory
60
$52
$ 3,120
Apr. 7
Jul. 16
Oct. 6
Purchase
140
54
7,560
Purchase
210
57
11,970
Purchase
120
58
6,960
$29,610
530
Transcribed Image Text:Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 60 $52 $ 3,120 Apr. 7 Jul. 16 Oct. 6 Purchase 140 54 7,560 Purchase 210 57 11,970 Purchase 120 58 6,960 $29,610 530
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 5 images

Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education