Question

You have the following information for Blue Spruce Corp. for the month ended October 31, 2022. Blue Spruce uses a periodic method for inventory Units Date Description Unit Cost or Selling Price Oct. 1 Beginning inventory 50 $22 Oct. 9 Purchase 125 24 Oct. 11 Sale 90 45 Oct. 17 Purchase 90 25 Oct. 22 Sale 50 50 Oct. 25 Purchase 60 27 Oct. 29 100 Sale 50 Calculate the weighted-average cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average cost per unit eTextbook and Media List of Accounts of the following meth Calculate ending inventory, cost of goods sold, gross profit under (1) LIFO (2) FIFO. (3) Average-cost. (Round answers to 0 decimal place, eg. 125) LIFO FIFO AVERAGE-COST The ending inventory The cost of goods sold Gross profit eTextbook and Media List of Accounts Calculate gross profit rate under each of the following methods (1) LIFO (2) FIFO (3) Average-cost. (Round answers to 1 decimal place, eg.51.2 % ) FIFO LIFO AVERAGE-COST Gross profit rate to to to

Answer 1

Weighted average cost = $24.523

	LIFO	FIFO	Average cost
The ending Inventory	$                 1,940	$                   2,245	$             2,084
Cost of Goods sold	$                 6,030	$                   5,725	$             5,886
Gross profit	$                 5,520	$                   5,825	$             5,664

.

	LIFO	FIFO	Average cost
Gross profit ratio	47.8%	50.4%	49.0%

Working

	Units	Cost per unit	value
Beginning Balance	50	$                   22.00	$ 1,100
Purchases
	125	$                   24.00	$ 3,000
	90	$                   25.00	$ 2,250
	60	$                   27.00	$ 1,620
Total	325		$ 7,970

.

Average Cost of Inventory
Units	(A)	325
Total Cost	(B)	$ 7,970
Average Cost	(C=B/A)	$                 24.523

.

FIFO
Total Units Available for sale		325
Units Sold		240
Closing Stock in Units		85
Valuation
Ending Inventory	60	@	$             27.00	$ 1,620
	25	@	$             25.00	$ 625
Value Of Ending Inventory				$              2,245
Cost of Goods sold				$              5,725
LIFO
Total Units Available for sale		325
Units Sold		240
Closing Stock in Units		85
Valuation
Ending Inventory	50	@	$             22.00	$ 1,100
	35	@	$             24.00	$ 840
Value Of Ending Inventory				$              1,940
Cost of Goods sold				$              6,030
Weighted Average method
Total Units Available for sale		325
Units Sold		240
Closing Stock in Units		85
Valuation
Ending Inventory	85	@	$           24.523	$              2,084
Value Of Ending Inventory				$              2,084
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$              5,886