Question

Sprint Shoes Inc. had a beginning inventory of 9,950 units on January 1, 20X1. The costs associated with the inventory were:

What was the value of ending inventory? (Do not round intermediate calculations.)

What was the gross profit?

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Answer 1

a.	Gross Profit	=	$                                                         893,665
b.	Ending Inventory	=	$                                                         195,552
	Workings:
	Sales	=	47630 X $44.60
		=	$                                                      21,24,298
	Less: Cost of goods sold (LIFO)	=	(44400 X $25.60) + (3230 X $29.10)
		=	$                                                      12,30,633
			LIFO
	Sales	=	$                                                      21,24,298
	Less: Cost of goods sold	=	$                                                      12,30,633
a.	Gross Profit	=	$                                                         8,93,665
b.	Ending Inventory	=	(9950 - 3230) X $29.10
		=	$                                                         1,95,552

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