Exercise 6-4 (Algo) Calculate Inventory amounts when costs are rising (LO6-3) During the year, TRC Corporation has the following inventory transactions. Date January 1 April 7 July 16 Transaction Beginning inventory Purchase Purchase October 6 Purchase Number of Units Unit Total Cost Cost 42 $34 $1,428 122 36 4,392 192 39 7,488 102 40 4,080 458 $17,388 For the entire year, the company sells 411 units of inventory for $52 each. Required: 1-a & b. Using FIFO, calculate ending inventory and cost of goods sold. 1-c & d. Using FIFO, calculate sales revenue and gross profit. 2-a & b. Using LIFO, calculate ending inventory and cost of goods sold. 2-c & d. Using LIFO, calculate sales revenue and gross profit. 3-a & b. Using weighted-average cost, calculate ending inventory and cost of goods sold. 3-c & d. Using weighted-average cost, calculate sales revenue and gross profit. 4. Determine which method will result in higher profitability when inventory costs are rising. Complete this question by entering your answers in the tabs below. Req 1a and b Req 1c and d Req 2a and b Req 2c and d Req 3a and b Req 3c and d Using FIFO, calculate ending inventory and cost of goods sold. Reg 4
Exercise 6-4 (Algo) Calculate Inventory amounts when costs are rising (LO6-3) During the year, TRC Corporation has the following inventory transactions. Date January 1 April 7 July 16 Transaction Beginning inventory Purchase Purchase October 6 Purchase Number of Units Unit Total Cost Cost 42 $34 $1,428 122 36 4,392 192 39 7,488 102 40 4,080 458 $17,388 For the entire year, the company sells 411 units of inventory for $52 each. Required: 1-a & b. Using FIFO, calculate ending inventory and cost of goods sold. 1-c & d. Using FIFO, calculate sales revenue and gross profit. 2-a & b. Using LIFO, calculate ending inventory and cost of goods sold. 2-c & d. Using LIFO, calculate sales revenue and gross profit. 3-a & b. Using weighted-average cost, calculate ending inventory and cost of goods sold. 3-c & d. Using weighted-average cost, calculate sales revenue and gross profit. 4. Determine which method will result in higher profitability when inventory costs are rising. Complete this question by entering your answers in the tabs below. Req 1a and b Req 1c and d Req 2a and b Req 2c and d Req 3a and b Req 3c and d Using FIFO, calculate ending inventory and cost of goods sold. Reg 4
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Exercise 6-4 (Algo) Calculate Inventory amounts when costs are rising (LO6-3)
During the year, TRC Corporation has the following inventory transactions.
Date
January 1
April 7
July 16
Transaction
Beginning inventory
Purchase
Purchase
October 6
Purchase
Number of
Units
Unit Total
Cost
Cost
42
$34
$1,428
122
36
4,392
192
39
7,488
102
40
4,080
458
$17,388
For the entire year, the company sells 411 units of inventory for $52 each.
Required:
1-a & b. Using FIFO, calculate ending inventory and cost of goods sold.
1-c & d. Using FIFO, calculate sales revenue and gross profit.
2-a & b. Using LIFO, calculate ending inventory and cost of goods sold.
2-c & d. Using LIFO, calculate sales revenue and gross profit.
3-a & b. Using weighted-average cost, calculate ending inventory and cost of goods sold.
3-c & d. Using weighted-average cost, calculate sales revenue and gross profit.
4. Determine which method will result in higher profitability when inventory costs are rising.
Complete this question by entering your answers in the tabs below.
Req 1a and b Req 1c and d Req 2a and b Req 2c and d Req 3a and b Req 3c and d
Using FIFO, calculate ending inventory and cost of goods sold.
Reg 4
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