Determine the Ending Inventory and Gross Profit using FIFO and LIFO for the quarter ending 3/31/XX for Company W (a widget reseller) based on the following information (Inventory on 1/14/XX = 0): ActionDateAmountCost Purchase1/15/XX150 Widgets$10 per Widget Purchase2/15/XX250 Widgets$11 per Widget Purchase3/15/XX600 Widgets$12 per Widget Total 1,000 Widgets Sell3/20/XX400 Widgets$20 per Widget Sell3/25/XX300 Widgets$20 per Widget 700 Widgets FIFO Inventory =LIFO Inventory =FIFO Gross Profit =LIFO Gross Profit =

FIFO means first-in, first-out i.e. oldest inventory will be sold out on a priority basis and…

Answered: Determine the Ending Inventory and…

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 3PEA: Beginning inventory, purchases, and sales for Item Gidget are as follows: Assuming a perpetual...

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Determine the Ending Inventory and Gross Profit using FIFO and LIFO for the quarter ending 3/31/XX for Company W (a widget reseller) based on the following information (Inventory on 1/14/XX = 0):

Action	Date	Amount	Cost

Purchase	1/15/XX	150 Widgets	$10 per Widget
Purchase	2/15/XX	250 Widgets	$11 per Widget
Purchase	3/15/XX	600 Widgets	$12 per Widget
Total		1,000 Widgets

Sell	3/20/XX	400 Widgets	$20 per Widget
Sell	3/25/XX	300 Widgets	$20 per Widget
		700 Widgets