Question

Iron Man began August with 75 units of iron inventory that cost $20 each. During August, the company completed the following inventory transactions: (Click the icon to view the transactions.)

Answer 1

1 Ending Inventory under FIFO s 1,685 2 Ending Inventory under LIFO S 1,605 3 Ending Inventory under Weighted average S 1,665 FIFO 2,900 LIFO 2,980 Weighted Average S 2,920 Cost of goods Sold S S FIFO 5,435 S LIFO Weighted Average 5.355S 5,415 Gross Profit $ FIFO Method

FIFO Date Quantity Purchased Purchases Unit Cost Purchases Total cost Quantity Sold Cost of Cost of Merchandise Merchandise Inventory Inventory Inventory Quantity Unit Cost Total Cost sold Unit Cost Sold Total cost Beg Aug Aug 3 65 S 20.00 $ 1,300 Aug. 8 70 $ 28.00 S 1.960 75 $ 20.00 $ 10 S 20.00 S 10 $ 20.00 S 70 S 28.00S 20 S 28.00 S 1.500 200 200 1.960 560 Aug 21 10 50 S S 20.00 S 28.00 S 200 1,400 Aug 30 25 S 45.00 $ 1.125 20 S 25 $ 28.00 S 45.00 S S 560 1.125 1,685 Total 2.900

LIFO Date Quantity Purchased Purchases Unit Cost Purchases Total cost Beg Aug. Aug 3 Aug. 8 70S 28.00 $ 1,960 Cost of Cost of Inventory Inventory Inventory Quantity Sold Merchandise Merchandise Quantity Unit Cost Total Cost sold Unit Cost Sold Total cost 75 $ 20.00 $ 1.500 65 $ 20.00 $ 1.300 10 $ 20.00 $ 200 10 $ 20.00 S 200 70 $ 28.00 $ 1.960 60 S 28.00 S 1.680 10 S 20.00 S 200 10 S 28.00 S 280 10 S 20.00 $ 200 10 $ 28.00 S 280 25 S 45.00S 1.125 2,980 S 1.605 Aug. 21 Aug 30 25 S 45.00 $ 1,125 Total

Weighted Average Cost Date Quantity Purchased Purchases Unit Cost Purchases Total cost Beg Aug Aug 3 Aug. 8 70 $ 28.00 S 1.960 Cost of Cost of Inventory Inventory Inventory Quantity Sold Merchandise Merchandise sold Unit Cost Sold Total cost Quantity Unit Cost Total Cost 75 $ 20.00 $ 1.500 65 S 20.00S 1,300 10 S 20.00 $ 200 10 S 20.00 S 200 70 S 28.00 S 1.960 80 $ 27.00 S 2.160 60 S 27.00 $ 1.620 20 $ 27.00 $ 540 20 $ 27.00 S 540 25 S 45.00 $ 1.125 45 S 37.00S 1,665 $ 2,920 $ 1,665 Aug 21 Aug 30 25 S 45.00 $ 1.125 Total Sales = 65*$59 +60*$75 = $8,335 Gross Profit = Sales Revenue - Cost of goods sold FIFO Method = $8.335-$2,900 = $5,435 LIFO Method = $8.335 - $2,980= $5.355 Weighted Average Method=$8.335-$2.920 = $5,415