Question

Use the following data for #5-12: Inventory information is presented below. Please calculate the ending inventory, cost of goods sold, and gross profit for each of the six inventory methods below and answer the questions. Round answers to the nearest dollar. 4/1 - Beginning inventory - 12 units at $22 cost 4/10 - Purchase - 22 units at $23 cost 4/15 - Sale - 26 units ($30 sales price) 4/20 - Purchase - 27 units at $24 cost 4/25 - Sale - 21 units ($30 sales price) #5 - Ending inventory using periodic LIFO is: #6 - Ending inventory using perpetual FIFO is: #7 - Ending inventory using perpetual moving average is: #8 - Cost of goods sold using periodic FIFO is: #9 - Cost of goods sold using periodic weighted average is: #10 - Cost of goods sold using perpetual LIFO is: #11 - Gross profit using periodic LIFO is: #12 - Gross profit using perpetual LIFO is:

Answer 1

Under Periodic LIFO
	Inventory				Closing values
Date	Particulars	No of Units	Unit Price	Total	Cl stock	Unit rate	Total
4/1	Opening stock	12	22	264	12	22	264
4/10	Purchase	22	23	506	34	23	770
4/15	Sale	22	23	506	12	22	264
	Sale	4	22	88	8	22	176
4/20	Purchase	27	24	648	35	24	824
4/25	Sale	22	24	528	13	23	296
		Units	Unit Rate	Amount
Ending inventory LIFO		13	23	296
Cost of goods sold			1,122
Gross Profit
Sales Price		1,410
Less Cost of goods sold		1,122
Gross Profit		288
		Under Periodic FIFO
			Inventory				Closing Values
		Date	Particulars	No of Units	Unit Price	Total	Cl stock	Unit rate	Total
		4/1	Opening stock	12	22	264	12	22	264
		4/10	Purchase	22	23	506	34	23	770
		4/15	Sale	12	22	264	22	23	506
			Sale	14	23	322	8	23	184
		4/20	Purchase	27	24	648	35	24	832
		4/25	Sale	14	23	322	21	24	510
		4/25	Sale	8	24	192	13	24	318
				Units	Unit Rate	Amount
		Ending inventory FIFO		13	24	318
		Cost of goods sold			1100
		Gross Profit
		Sales Price		1410
		Less Cost of goods sold		1100
		Gross Profit		310
		Under moving average method
			Inventory				Closing Values
		Date	Particulars	No of Units	Unit Price	Total	Cl stock	Unit rate	Total
		4/1	Opening stock	12	22	264	12	22	264
		4/10	Purchase	22	23	506	34	23	770
		4/15	Sale	26	23	589	8	23	181
		4/20	Purchase	27	24	648	35	24	829
		4/25	Sale	22	24	521	13	24	308
				Units	Unit Rate	Amount
		Ending inventory FIFO		13	24	308
		Cost of goods sold			1,110
		Gross Profit
		Sales Price		1,410
		Less Cost of goods sold		1,110
		Gross Profit		300