During April, Wiggins Company sold 900 units of Product X for $10 per unit. Its beginning inventory, purchases, and sales during the month were as follows: April 1 Beginning Inventory 200 units @ $1 5 Purchases 200 units @ $2 8 Sales 300 units 10 Purchases 200 units @ $3 15 Purchases 200 units @ $4 18 Sales 300 units 20 Purchases 200 units @ $5 25 Purchases 200 units @ $6 28 Sales 300 units It was further noted that the ending inventory consisted of 300 units. Compute the proper cost to be assigned to ending inventory, cost of goods sold, and gross margin under each of these methods using the periodic system: (a) Average cost, (b) FIFO, and (c) LIFO. Ending Inventory Cost of Goods Sold Gross Profit Weighted Average Method FIFO First-In First-Out Method LIFO Last-In First-Out Method
During April, Wiggins Company sold 900 units of Product X for $10 per unit. Its beginning inventory, purchases, and sales during the month were as follows:
April 1 Beginning Inventory 200 units @ $1
5 Purchases 200 units @ $2
8 Sales 300 units
10 Purchases 200 units @ $3
15 Purchases 200 units @ $4
18 Sales 300 units
20 Purchases 200 units @ $5
25 Purchases 200 units @ $6
28 Sales 300 units
It was further noted that the ending inventory consisted of 300 units. Compute the proper cost to be assigned to ending inventory, cost of goods sold, and gross margin under each of these methods using the periodic system:
(a) Average cost, (b) FIFO, and (c) LIFO.
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Ending Inventory |
Cost of Goods Sold |
Gross Profit |
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Weighted Average Method |
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FIFO First-In First-Out Method |
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LIFO Last-In First-Out Method |
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