Question

I need to find the ending inventory, cost of goods sold, and gross profit for LIFO, FIFO and Average-cost. How do I do this?

*Problem 6-5A (Part Level Submission) You are provided with the following information for Whispering Winds Inc. for the month ended June 30, 2019. Whispering Winds uses the periodic system for inventory Unit Cost or Description Beginning inventory Quantity Selling Price Date 38 $42 June 1 Purchase 137 46 June 4 June 10 Sale 115 69 Sale return June 11 18 69 Purchase 54 48 June 18 Purchase return 8 48 June 18 June 25 Sale 64 74 Purchase 30 52 June 28

Answer 1

FIFO - PERIODICAL METHOD
		PURCHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
June, 01	Beginning inventory	38	$             42.00	$1,596
June, 04	Purchases	137	$             46.00	$6,302
June, 18	Purchases (54 -8)	46	$             48.00	$2,208
June, 28	Purchases	30	$             52.00	$1,560
	Goods Available For sold	251		$11,666
	Sales (115 -18 + 64)	161			38	$             42.00	$1,596
					123	$             46.00	$5,658	14	$         46.00	$644
								46	$         48.00	$2,208
								30	$         52.00	$1,560
					161		$7,254	90		$4,412
LIFO - PERIODICAL METHOD
		PURCHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
June, 01	Beginning inventory	38	$             42.00	$1,596
June, 04	Purchases	137	$             46.00	$6,302
June, 18	Purchases (54 -8)	46	$             48.00	$2,208
June, 28	Purchases	30	$             52.00	$1,560
	Goods Available For sold	251		$11,666
	Sales (115 -18 + 64)	161			30	$             52.00	$1,560
					46	$             48.00	$2,208
					85	$             46.00	$3,910	52	$         46.00	$2,392
								38	$         42.00	$1,596
					161		$7,678	90		$3,988
AVERAGE METHOD
		PURCHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
June, 01	Beginning inventory	38	$             42.00	$1,596
June, 04	Purchases	137	$             46.00	$6,302
June, 18	Purchases (54 -8)	46	$             48.00	$2,208
June, 28	Purchases	30	$             52.00	$1,560
	Goods Available For sold	251	$             46.48	$11,666
	Sales (115 -18 + 64)	161			161	$             46.48	$7,483	90	$         46.48	$4,183
					161		$7,483	90		$4,183
		FIFO	LIFO	AVERAGE
ANSWER = 1	Ending inventory	$4,412	$3,988	$4,183
ANSWER = 2	Cost of Goods Sold	$7,254	$7,678	$7,483
ANSWER = 3	CALCULATION OF GROSS PROFIT	FIFO	LIFO	AVERAGE
	Sales Revenue as on June 10	$7,935	$7,935	$7,935
	Sales Return as on June 11	-$1,242	-$1,242	-$1,242
	Sales Return as on June 25	$4,736	$4,736	$4,736
	Total Revenue	$11,429	$11,429	$11,429
	Less: Cost of Goods Sold	$7,254	$7,678	$7,483
	Gross Profit	$4,175	$3,751	$3,946