Question

Exercise 8-10 a-c Inventory information for Part 311 of Wildhorse Corp. discloses the following information for the month of June. June 1 11 20 Balance Purchased Purchased 301 units @ $15 797 units @ $18 497 units @ $20 June 10 15 27 Sold Sold Sold 203 units @ $37 497 units @ $38 298 units @ $41 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 Cost of Goods Sold Ending Inventory s LINK TO TEXT Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO? The ending inventory at LIFO $ LINK TO TEXT 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? Gross Profit (FIFO) Click if you would like to Show Work for this question: Open Show Work

Answer 1

Answer 2 Firstly 3 we have to calculate the number of units sold 4 = 203 +497 +298 5 = 998 Units 7 Units in ending inventory 3 = total Units available for sale-Units sold 9 = (301+797+497) -998 10 = 597 units .2 Part 1) 4 Cost of goods sold LIFO 18958 ((501*18)+(497*20)) 9843 ((301*15)+(296*18)) FIFO 17061 ((301*15)+(697*18)) 11740 ((497*20)+(100*18)) .6 Ending inventory

B Ε F н A 1 Part 2) 2 3 4 Date 5 June.1 6 June. 10 7 June.11 1470 8 9 June.15 LIFO PERPETUAL PURCHASES COST OF GOODS SOLD L ENDING INVENTORY UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL 301 15 4515 203 153045 98 15| 1470 797 18 14346 14346 18 8946 1470 300 5400 497 20 9940 1470 5400 9940 298 2015960 98 14701 300 5400 3980 24286 998 179511 597 10850 10 11 June.20 12 14 June 27 20 Total 1294 18 19 The correct answer is 20 The ending inventory at LIFO 21 $10,850

22 Part 3) 24 UNIT 301 1470 98 30 98 1470 398) FIFO PERPETUAL PURCHASES COST OF GOODS SOLD ENDING INVENTORY 26 Date UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL 27 June.1 4515 28 June. 10 I 203 15 3045 29 June.11 797 18 14346 1470 797 14346 31 June.15 7164 32 7182 33 June.20 497 20 9940 7164 34 9940 35 June 27 298 5364 100 1800 497 9940 37 Total 1294 24286 998 17061 597 11740 38 39 The gross profit FIFO 40 = sales - Cost of goods sold 41 = ((203*37)+(497*38)+(298*41))-17061 42 = $ 21554 43 44 Gross Profit (FIFO) $21,554 398 497 36