During the month of September, KM Co. sells 9,800 watches for $300.00 each. The company has the following inventory purchase transactions for September. Date Transaction No. of units Unit cost Total cost 1-Sep Beginning inventory 300 $195.00 $ 58,500 4-Sep Purchase 6,000 $198.00 11,88,000 24-Sep Purchase 3,700 $200.00 7,40,000 10,000 $ 19,86,500 Suppose the company uses LIFO inventory valuation. Calculate the gross profit.

Principles of Accounting Volume 2
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Author:OpenStax
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Chapter4: Job Order Costing
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During the month of September, KM Co. sells 9,800 watches for
$300.00 each. The company has the following inventory purchase
transactions for September.
Date
Transaction
No. of units Unit cost
Total cost
1-Sep Beginning inventory
300
$195.00
$ 58,500
4-Sep Purchase
6,000 $198.00
11,88,000
24-Sep Purchase
3,700 $200.00
7,40,000
10,000
$ 19,86,500
Suppose the company uses LIFO inventory valuation. Calculate the
gross profit.
Transcribed Image Text:During the month of September, KM Co. sells 9,800 watches for $300.00 each. The company has the following inventory purchase transactions for September. Date Transaction No. of units Unit cost Total cost 1-Sep Beginning inventory 300 $195.00 $ 58,500 4-Sep Purchase 6,000 $198.00 11,88,000 24-Sep Purchase 3,700 $200.00 7,40,000 10,000 $ 19,86,500 Suppose the company uses LIFO inventory valuation. Calculate the gross profit.
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