Question

You are prov/ided with the/ following information for Tamarisk Inc. /for the month ended June 30, 2020. Tamarisk /uses the periodic /method for /inventory.

Calculate gross/ profit rate under /each /of the following methods. 1) LIFO./ 2) FIFO. 3 Average-cost. (Round answers to 1 decimal place, e.g. 38.9%.)

✓ Your answer is correct. Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO.(3) Average-cost. (Round average-cost method answers to 2 decimal places, e.g. 1,250.25 and other answers to 0 decimal places, e.g. 1,250. Use weighted average unit cost rounded to 2 decimal places for computations.) LIFO FIFO AVERAGE-COST The ending inventory $ 3906 4324 $ 4106 A 3906 6718 $ $ The cost of goods sold $ 6300 " 6518 Gross profit 4 4536 " 4954 " 4736 Attempts: 3 of 5 used (a3) Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 1 decimal place, e.g. 51.2%.) LIFO LIFO FIFO AVERAGE-COST Gross profit rate Attempts: 0 of 5 used Save for Later Submit Answer

Answer 1

Answer to A(3)

Gross profit rate: Gross profit/ Net sales

Gross profit has already been calculated

Net sales = Sales - Sales return

= (105*71) + (64*76) - (15*71)

=11254 $

Gross profit rate - LIFO:

=4536$/11254$

=40.3%

Gross profit rate - FIFO:

=4954$/11254$

=44%

Gross profit rate - Average cost:

=4736$/11254$

=42.1%