Date Jan. 1 Beginning inventory Jan. 3 Sales Feb. 14 Purchase' Feb. 15 Sales June 30 Purchase Sales Purchase Totals Activities Nov. 6 Nov. 19 Units Acquired at Cost 70 units @ $2$ 140 94 units @ $3= $ 282 120 units @ $4$ 480 34 units@ $5= $ 170 318 units $1,072 Required: The company uses a periodic inventory system. Units Sold at Retail 42 units @ $8 86 units @ $8 94 units @ $8 222 units a. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. b. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. c. Compute the gross margin for each method.
Date Jan. 1 Beginning inventory Jan. 3 Sales Feb. 14 Purchase' Feb. 15 Sales June 30 Purchase Sales Purchase Totals Activities Nov. 6 Nov. 19 Units Acquired at Cost 70 units @ $2$ 140 94 units @ $3= $ 282 120 units @ $4$ 480 34 units@ $5= $ 170 318 units $1,072 Required: The company uses a periodic inventory system. Units Sold at Retail 42 units @ $8 86 units @ $8 94 units @ $8 222 units a. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. b. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. c. Compute the gross margin for each method.
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Inventories
Section: Chapter Questions
Problem 6.2BE: Perpetual inventory using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as...
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