Question

emming Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units Sold at Retail an. 1 Beginning inventory 300 units @ $15.00 - $4,500 an. 10 Sales 240 units @ $40.00 $8,800 lar. 14 Purchase 410 units @ $16.00 = 6,560 ar. 15 Sales 290 units @ $40.00 - 11.800 II. 30 Purchase 500 units @ $17.00 = 8,500 440 units @ $40.00 - 17.800 ct. 5 Sales 2.700 t. 26 150 units @ $18.00 = Purchase $22.260 1.360 units $38.800 970 units nming uses a perpetual inventory system, Determine the cost assigned to cost of goods sold using FIFO and LIFO. apute gross-margin-for each method. & weicbred. avhare

Answer 1

Cost of Goods Sold FIFO $ 15,480 LIFO S 15,720 Weighted Average S 15,552 Quantity Purchased Date FIFO Cost of Cost of Purchases Quantity Merchandise Merchandise Total cost Sold sold Unit Cost Sold Total cost Purchases Unit Cost Inventory Inventory Inventory Quantity Unit Cost Total Cost Jan. 1 Jan. 10 Mar. 14 240 $ 15.00 $ 3,600 410 $ 16.00 $ 6,560 300 60 60 410 180 $ $ $ $ $ 15.00 15.00 15.00 16.00 16.00 $ $ $ $ $ 4,500 900 900 6,560 2,880 Mar.15 60 $ 230 $ 15.00 16.00 $ $ 900 3,680 April.30 500 $ 17.00 $ 8,500 180 500 240 $ $ $ 16.00 17.00 17.00 $ $ $ 2,880 8,500 4,080 Oct.5 180 260 $ $ 16.00 17.00 $ $ 2,880 4,420 Oct.26 150 $ 18.00 $ 2,700 240 $ 150 $ 17.00 18.00 $ $ 4,080 2,700

Quantity Purchased Date Purchases Unit Cost LIFO Cost of Cost of Quantity Merchandise Merchandise Sold sold Unit Cost Sold Total cost Purchases Total cost Inventory Inventory Quantity Unit Cost Inventory Total Cost Jan. 1 Jan. 10 Mar.14 240 $ 15.00 $ 3,600 410 S 16.00 $ 6,560 Mar.15 290S 16.00 $ 4,640 April.30 500 $ 17.00 $ 8,500 300 $ 60 $ 60 $ 410 $ 60 $ 120 $ 60 $ 120 $ 500 $ 60 $ 120 $ 60 $ 60 $ 120 $ 60 $ 150 $ 15.00 $ 15.00 $ 15.00 $ 16.00 $ 15.00$ 16.00 $ 15.00 $ 16.00 $ 17.00 $ 15.00 $ 16.00 $ 17.00 $ 15.00 $ 16.00 $ 17.00 $ 18.00 $ 4,500 900 900 6,560 900 1,920 900 1,920 8,500 900 1,920 1,020 900 1,920 1,020 2,700 Oct.5 440 $ 17.00 $ 7,480 Oct.26 150 $ 18.00 $ 2,700

Date Quantity Purchased Purchases Unit Cost Weighted Average Cost Cost of Cost of Purchases Quantity Merchandise Merchandise Total cost Sold sold Unit Cost Sold Total cost Jan.1 Jan. 10 Mar. 14 240 $ 15.00 $ 3,600 410 $ 16.00 $ 6,560 290 S 15.87 $ 4,603 Mar. 15 April.30 Inventory Inventory Inventory Quantity Unit Cost Total Cost 300 $ 15.00 $ 4,500 60 $ 15.00 $ 900 60 $ 15.00 $ 900 410 $ 16.00 $ 6,560 470 $ 15.87 $ 7,460 180 $ 15.87 $ 2,857 180 $ 15.87 $ 2,857 500 $ 17.00 $ 8,500 680 $ 16.70 $ 11,357 240 $ 16.70 $ 4,008 240 $ 16.70 $ 4,008 150 $ 18.00 $ 2,700 390 $ 17.20 $ 6,708 500 $ 17.00 $ 8,500 440 S 16.70 $ 7,349 Oct.5 Oct. 26 150 $ 18.00 $ 2,700