Question

Do Homework - Yucheng GaoGoogle Chrome mathx.com/Student/Player Homework.aspx?homeworkide 557743420&questionld1&flushed-false cid=59066818.centerwinyes ISE 3004 - Industrial Cost Control (Spring 2020) Yucheng Gao & 02/14/20 4:11 AM Homework: 5 - Inventory Evaluation Save Score: 0 of 10 pts 2 of 3 (2 complete) HW Score: 6.25%, 2 of 32 pts X E16-56 (similar to) The inventory of the Black Hill Coal Company on June 30 shows 800 tons at 58 per ton. A physical inventory on July 31 shows a total of 1,000 tons on hand. Revenue from sales of coal for a tots $120.000. The following purchases were made during July: July 5, 900 tons at 562 per ton July 15, 300 on 63 per ton July 25, 150 tons of 364 per ton. Requirements 1. Compute the inventory value as of July 31, using (a) FIFO and (b) LIFO 2. Compute the gross profit using each method Requirement 1. Compute the inventory values of July 31 (a) Begin by computing the ending inventory value using FIFO (First in Fist out). Leave any unused cells blank. Do not enter a 'O' for any 20 balances) Inventory Layer Units Un cost Tot cost Beginning inventory 800 tons 56 per ton 46400 Purchase from July 5 000 tons $ 62 perton - Purchase from July 15 300 tons * $ 18.900 63 perton- Purchase from July 25 150 tons * $ 64 perton 64000 Ending inventory - FIFO 1000 tons Enter any number in the edit fields and then click Check Answer Check Answer Clear All 3 remaining 3 parts D 0 411 AM c 44 2/14/2000

still need both FIFO and LIFO

and compute the gross profit using each method

Answer 1

1)Computation of closing inventory -using FIFO

FIFO
Inventory Layer	Units(tons)*	Unit cost =	Total cost
Beginning inventory	800	58	46400
Purchased from July 5	900	62	55800
Purchased from July 15	300	63	18900
Purchased from July 25	150	64	9600
Ending inventory -FIFO
a)from July 5-550 units	550	62	34100
b)From July 15-300 nits	300	63	18900
c)From July 25-150 units	150	64	9600
Ending inventory -FIFO			62600

B) Using LIFO

LIFO
Inventory Layer	Units(tons)*	Unit cost =	Total cost
Beginning inventory	800	58	46400
Purchased from July 5	900	62	55800
Purchased from July 15	300	63	18900
Purchased from July 25	150	64	9600
Ending inventory -LIFO
a)from July 5-200 units	200	62	12400
b)Beginning inventory	800	58	46400
Ending inventory -LIFO			58800

2) Computation of gross profit

	FIFO	LIFO
Particulars	Amount	Amount
Sales	$       120,000	$      120,000
(LESS)Cost of Goods Sold
(Opening stock + Purchases-closing stock)	68100	71900
Gross Profit	$          51,900	$        48,100