Question

HOMEWORK PROBLEM 2:

Stocks, Inc., sells weight-lifting equipment. The sales and inventory records of the company for January through March 2017 were as follows:

	Weight Sets	Unit Cost	Total Cost
Beginning inventory, January 1	460	$30	$13,800
Purchase, January 16	110	32	3,520
Sale, January 25 ($45 per set)	216	45	9,720
Purchase, February 16	105	36	3,780
Sale, February 27 ($40 per set)	307	40	12,280
Purchase, March 10	150	28	4,200
Sale, March 30 ($50 per set)	190	50	9,500

Determine the amounts for ending inventory, cost of goods sold, and gross profit under the FIFO, LIFO and Average Cost costing alternatives. Use the periodic inventory method, which means that all sales are assumed to happen at the end of the period no matter when they actually occurred. Round amounts to the nearest dollar.

Calculate Cost of Goods Available for Sale:

Date	Units	Price		Total
Beginning inventory	460	$30	Beginning Inventory	13,800
January 16	110	$32	+ purchases	3,520
February 16	105	$36	+ purchases	3,780
March 10	150	$28	+ purchases	4,200
TOTAL	825	126	= Goods available for sale	25,300

LIFO:

Calculate LIFO Ending Inventory:

How many sets were sold?                          

Ending inventory would be the oldest

Date	Price	Total
TOTAL ENDING INVENTORY

Calculate LIFO Cost of Goods Sold:

This would be the newest sets from inventory:

Date	Price	Total
	$28
	$36
	$32
	$30
LIFO COGS:

Calculate LIFO Gross Profit:

Gross Profit:

Sales:
-COGS
Gross Profit

Calculate Average Cost:

Average Cost per Unit: Goods Available for Sale/Number of Units

Average Cost Ending Inventory:

Average Cost of Goods Sold:

Average Cost Gross Profit:

Sales:
-COGS
Gross Profit

Answer 1