Question

Name: Class Time: Turkeys Fryers, Inc. specializes in whole-turkey deep fryers. The following information was taken from the Company's inventory records for the fiscal year ended November 30, 2019. Units Value/Unit Total $ 36,000 Beginning Inventory Purchase 1-4/25/19 Purchase 2-10/20/19 Purchase 3-11/17/19 Ending Inventory - 11/30/19 11/30/18 400 $90.00 $100,00 900 $90,000 $169,600 $ 84,000 1,600 $106.00 $120.00 700 900 Calculate the required amounts and fill in the table below: Sales (in units): Goods Available for Sale (units): Goods Available for Sale ($): Cost of Goods Sold Ending Inventory FIFO LIFO Weighted Average The sales price was $140 per unit. Calculate the gross margins for Turkey Fryers using FIFO and LIFO. FIFO LIFO Sales Cost of Goods Sold Gross Margin What is the LIFO reserve at 11/30/19? What is inventory profit at 11/30/19?

any help with this is greatly appreciated

Answer 1

FIFO
particular	unit	rate	total
beginning inventory	400	90	36000
Purchase:
1	900	100	90,000
2	1,600	106	1,69,600
3	700	120	84,000
cost of goods available for sale	3600		3,79,600
cost of goods sold:
beginning inventory	400	90	36,000
1	900	100	90,000
2	1,400	106	1,48,400
cost of goods sold	2700		2,74,400
ending inventory	900		1,05,200

LIFO
particular	unit	rate	total
beginning inventory	400	90	36000
Purchase:
1	900	100	90,000
2	1,600	106	1,69,600
3	700	120	84,000
cost of goods available for sale	3600		3,79,600
cost of goods sold:
3	700	120	84,000
2	1,600	106	1,69,600
1	400	100	40,000
cost of goods sold	2700		2,93,600
ending inventory	900		86,000

weighted average
particular	unit	rate	total
beginning inventory	400	90	36000
Purchase:
1	900	100	90,000
2	1,600	106	1,69,600
3	700	120	84,000
cost of goods available for sale	3600		3,79,600
cost of goods sold	2,700	105.44	2,84,688
ending inventory	900		94,912

	ending inventory	cost of goods sold
FIFO	1,05,200	2,74,400
LIFO	86,000	2,93,600
Weighted average	94,912	2,84,688

               

	FIFO	LIFO
sale	3,78,000	3,78,000
cost of goods sold	2,74,400	2,93,600
gross margin	1,03,600	84,400

LIFO reserve = FIFO inventory - LIFO inventory

= 105,200 - 86,000

= 19,200

inventory profit (FIFO) = 140 - 116.88 = 23.11

inventory profit (LIFO) = 140 - 95.55 = 44.44

inventory profit (weighted average) = 140 - 105.45 = 34.54