Question

You have the following information for Tamarisk, Inc. for the month ended October 31, 2022. Tamarisk uses a periodic method for inventory.

Date		Description		Units		Unit Cost or Selling Price
Oct. 1		Beginning inventory		60		$24
Oct. 9		Purchase		115		26
Oct. 11		Sale		95		45
Oct. 17		Purchase		95		27
Oct. 22		Sale		60		50
Oct. 25		Purchase		70		29
Oct. 29		Sale		105		50

Calculate the weighted-average cost.

Calculate ending inventory, cost of goods sold, gross profit under each of the following methods.

(1) LIFO.
(2) FIFO.
(3) Average-cost. (Round answers to 0 decimal place, e.g. 125.)

Calculate gross profit rate under each of the following methods.

(1) LIFO.
(2) FIFO.
(3) Average-cost.

Answer 1

units Working Periodic Weighted avg Date Activity 01-Oct Beginning 09-Oct Purchases 17-Oct Purchases 25-Oct Purchases per unit cost Total 60 $ 24.00 $ 1,440.00 115 $ 26,00 $ 2,990.00 95 $ 27.00 $ 2,565.00 70 $ 29.00 $ 2,030.00 Units available for sale Less : units sold Ending inventory 340 -260 80 340 Cost of goods available for sale Less : Ending inventory @ 80 units @26.54 Cost of goods sold $ $ $ 9,025.00 2,123 6,902 Requirement 1 Average cost per unit = 9025/340 26.54 periodic FIFO Date units Activity 01-Oct Beginning 09-Oct Purchases 17-Oct Purchases 25-Oct Purchases per unit cost Total 60 $ 24.00 $ 1,440.00 115 $ 26.00 $ 2,990.00 95 $ 27.00 $ 2,565.00 70 $ 29.00 $ 2,030.00 Cost of goods available for sale $ 9,025.00 Less : Ending inventory @80 units 70 units @ 29 10 units @ 27 $ $ 2,030.00 270.00 $ 2,300.00 Cost of goods sold $ 6,725.00 periodic LIFO Date units Activity 01-Oct Beginning 09-Oct Purchases 17-Oct Purchases 25-Oct Purchases per unit cost Total 60 $ 24.00 $ 1,440.00 115 $ 26.00 $ 2,990.00 95 $ 27.00 $ 2,565.00 70 $ 29.00 $ 2,030.00 Cost of goods available for sale $ 9,025.00 Less : Ending inventory @80 units 60 units @ $24 20 units @ $26 $ $ 1,440.00 520.00 $ 1,960.00 Cost of goods sold $ 7,065.00 [2] [3] LIFO $ Cost of ending inventory Cost of goods sold 1,960.00 7,065.00 FIFO $ $ 2,300.00 6,725.00 Average cost $ 2,123 $ 6,902 Gross profit : LIFO Sales Less: Cost of goods sold Gross profit [2] [3] FIFO Average cost 12,525.00 $ 12,525.00 $ 12,525.00 (7,065.00) $ (6,725.00) $ (6,902) 5,460.00 $ 5,800.00 $ 5,623 $