### Manganese Plus Inventory Analysis**Units Available for Sale During the Year:**- **Mar. 1 - Inventory:** - 22 units - Price per unit: $31 - Total cost: $682- **June 16 - Purchase:** - 32 units - Price per unit: $34 - Total cost: $1,088- **Nov. 28 - Purchase:** - 39 units - Price per unit: $35 - Total cost: $1,365**Total:**- **Total Units:** 93 units- **Total Cost:** $3,135**Physical Inventory at November 30:**- 12 units**Task:**Determine the difference in gross profit between the LIFO (Last In, First Out) and FIFO (First In, First Out) inventory cost systems. Enter the answer as a positive number.**Calculations:**1. **FIFO (First In, First Out) Cost of Goods Sold:** - Start selling from the oldest inventory. - Cost of 81 units (93 total - 12 ending inventory): \[ 22 \text{ units @ } \$31 + 32 \text{ units @ } \$34 + 27 \text{ units @ } \$35 = \$682 + \$1,088 + \$945 = \$2,715 \] - Ending inventory (12 units from the most recent purchase): \[ 12 \text{ units @ } \$35 = \$420 \] - Cost of Goods Sold (FIFO): \[ \$2,715 \]2. **LIFO (Last In, First Out) Cost of Goods Sold:** - Start selling from the most recent inventory. - Cost of 81 units (93 total - 12 ending inventory): \[ 39 \text{ units @ } \$35 + 32 \text{ units @ } \$34 + 10 \text{ units @ } \$31 = \$1,365 + \$1,088 + \$310 = \$2,763 \] - Ending inventory (12 units from the oldest and middle purchases): \[ 12 \text{ units (10 @ $31 + 2 @ $34)} = \$372

Name: ### Manganese Plus Inventory Analysis**Units Available for Sale Durin
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Description: ### Manganese Plus Inventory Analysis**Units Available for Sale During the Year:**- **Mar. 1 - Inventory:** - 22 units - Price per unit: $31 - Total cost: $682- **June 16 - Purchase:** - 32 units - Price per unit: $34 - Total cost: $1,088- **N

Cost of Goods sold= Cost of goods available for sale-Ending Inventory

Business

Accounting

The units of Manganese Plus available for sale during the year were as follows: Mar. 1 Inventory 22 units @ $31 $682 June 16 Purchase 32 units @ $34 1,088 Nov. 28 Purchase 39 units @ $35 1,365 93 units $3,135 There are 12 units of the product in the physical inventory at November 30. The periodic inventory system is used. Determine the difference in gross profit between the LIFO and FIFO inventory cost systems Enter the answer as a positive number. FIFO Cost of Goods Sold 24 LIFO Cost of Goods Sold 2$ Difference %24

The units of Manganese Plus available for sale during the year were as follows: Mar. 1 Inventory 22 units @ $31 $682 June 16 Purchase 32 units @ $34 1,088 Nov. 28 Purchase 39 units @ $35 1,365 93 units $3,135 There are 12 units of the product in the physical inventory at November 30. The periodic inventory system is used. Determine the difference in gross profit between the LIFO and FIFO inventory cost systems Enter the answer as a positive number. FIFO Cost of Goods Sold 24 LIFO Cost of Goods Sold 2$ Difference %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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