Flyaway Company reported the following purchases and sales for its box kite: Dat
ID: 2369644 • Letter: F
Question
Flyaway Company reported the following purchases and sales for its box kite:
Date Activities Units Acquired at Cost Units Sold at Retail
May 1 Beginning Inventory 150 units @ $10.00
5 Purchase 220 units @ $12.00
10 Sales 140 units @ $20.00
15 Purchase 100 units @ $13.00
24 Sales 150 units @ $21.00
(A) What is the cost assigned to the ending inventory using FIFO. (B) What is the gross profit using FIFO. (C) What is the cost assigned to ending inventory using LIFO. (D) What is the gross profit using LIFO. (E) Why would a company want a low gross profit?
***Please show work when calculating the answers***
Explanation / Answer
COGS = beginning inventory + purchases