Question

Required information The following information applies to the questions displayed below) During the year. Trombley Incorporated has the following inventory transactions Number of units Unit Cost $ 31 Date Transaction Jan. 1 Beginning inventory Har 4 Purchase Jun. 9 Purchase Nov. 11 Purchase 30 Total cost $899 1,020 1.131 1,053 $4,103 For the entire year, the company sells 110 units of inventory for $39 each

Answer 1

1) FIFO

	Cost of goods available for sale			Cost of goods sold			Ending inventory
FIFO	# of units	Cost per unit	Total cost	# of units	Cost per unit	Total cost	# of units	Cost per unit	Total cost
Beginning inventory	29	31	899	29	31	899
Purchases
Mar 4	34	30	1020	34	30	1020
June 9	39	29	1131	39	29	1131
Nov 11	39	27	1053	8	27	216	31	27	837
Total	141		4103	110		3266	31		837

Sales revenue = 110*39 = 4290

Gross profit = 4290-3266 = 1024

2) LIFO

	Cost of goods available for sale			Cost of goods sold			Ending inventory
LIFO	# of units	Cost per unit	Total cost	# of units	Cost per unit	Total cost	# of units	Cost per unit	Total cost
Beginning inventory	29	31	899				29	31	899
Purchases
Mar 4	34	30	1020	32	30	960	2	30	60
June 9	39	29	1131	39	29	1131
Nov 11	39	27	1053	39	27	1053
Total	141		4103	110		3144	31		959

Sales revenue = 110*39 = 4290

Gross profit = 4290-3144 = 1146

3) Weighted average

	Cost of goods available for sale			Cost of goods sold			Ending inventory
Weighted average	# of units	Cost per unit	Total cost	# of units	Cost per unit	Total cost	# of units	Cost per unit	Total cost
Beginning inventory	29	31	899
Purchases
Mar 4	34	30	1020
June 9	39	29	1131
Nov 11	39	27	1053
Total	141		4103	110	29.10	3201	31	29.10	902

Sales revenue = 110*39 = 4290

Gross profit = 4290-3201 = 1089