Question

UOLIUL TULLUMUTURIIUTIUNILILULIII122 The Devlin Corporation, a diversified distribution company, purchases cartons of canned tennis balls from the Questor Company and markets the balls under the Devlin brand name. Devlin started operations on January 1, 2019. In the table below, Quarter 1 represents the time period from January 1, 2019 to March 31, 2019 and Quarter 2 represents the time period from April 1, 2019 to June 30, 2019. Devlin began operations on January 1, 2019 with no inventory. Purchases and sales data for Devlin's first two quarters of business are shown below: Quarter 1 Sales 26,000 cartons at $50 per carton Purchases January 8,000 cartons at $25 February 10,000 cartons at $28 March 12,000 cartons at $32 June Quarter 2 Sales 50,000 cartons at $58 per carton Purchases April 12,000 cartons at $35 May 16,000 cartons at $38 20,000 cartons at $42 19. Calculate the Quarter 2 ending inventories (in dollars) using the LIFO inventory valuation method. 20. Calculate Quarter 2 GROSS PROFIT using the LIFO inventory valuation method. 21. Calculate the Quarter 2 ending inventories (in dollars) using the FIFO inventory valuation method. 22. Calculate Quarter 2 GROSS PROFIT using the FIFO inventory valuation method.

Answer 1

G 1 19. caculation of the quarter 2 ending inventory usig lifo 21. caculation of the quarter 2 ending inventory using fifo 3 closing balnce of qurarter 1st 4 total purchase-total sales of quarter 1 4000 =8000+10000+12000-26000 closing balnce of qurarter 1st total purchase-total sales of quarter 1 4000 =8000+10000+12000-26000 carton carton 7 under lifo method these carton belongs to the january moths under Fifo method these carton belongs to the march months 100,000.00 4000*25 value of 4000 cartons is therfore @32 128,000.00 4000*32 9 value of 4000 cartons is therfore @25 10 11 now aty 12 opening balnace 4000 13 purchase value 100,000.00 now opening balnace purchase qty 4000 value 128,000.00 14 15 april 16 may 17 june 12000 16000 20000 420000 608000 840000 april may june 12000 16000 20000 420000 608000 840000 19 cost of sales cost of sales 50,000.00 1918000 =20000+16000+12000+(4000/2) =840000+608000+420000+(100000/2) 50,000.00 1912000 =4000+12000+16000+18000 =(4000*32)+(12000*35)+(16000*38)+(18000*42) 22 closing balance 2,000.00 closing balance 2,000.00 50,000.00 (2000-25) 84,000.00 (2000*42) A A A A A 25 20) gross profit =50000*58 22) gross profit =50000 58 sales COST OF GOODS SOLD gross profit $2,900,000.00 $1,918,000.00 $982,000.00 sales COST OF GOODS SOLD gross profit $2,900,000.00 $1,912,000.00 $988,000.00