Assuming that the periodic inventory method is used, compute the cost of goods s
ID: 2509625 • Letter: A
Question
Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.
(1)
LIFO
(2)
FIFO
Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO?
Inventory information for Part 311 of Teal Corp. discloses the following information for the month of June.June 1 Balance 302 units @ $15 June 10 Sold 197 units @ $36 11 Purchased 795 units @ $18 15 Sold 499 units @ $38 20 Purchased 499 units @ $20 27 Sold 296 units @ $41
Explanation / Answer
Answer:
Total sales
June 10 sold 197 units @ $36 = $7092
June 15 sold 499 units @ $38 = $18962
June 27 sold 296 units @ $ 41 = $12136
Total sales = $38190
Cost of Goods Sold as per FIFO = $16950
Gross Profit ( FIFO) = $21240