Question

Requirement 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross protit. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Cost of Goods Sold Inventory on Hand Unit Unit Unit Date QuantityCostCoQuantity Cost Cost Quantity Cost Cost 90 90 130 65 65 76 76 5,850 5,850 9,880 6,080 Jan, 1 76 9,880 5,850 76 3,800 86 4,620 80 170 70 76 6,080 14,620 6,020 18 170 76 6,080 8,600 24,330 86 100 86 24,500 6,020 320 70 Determine the company's gross profit using the FIFO inventory costing method. Gross profit is S 11,030 using the FIFO inventory costing method. Enter any number in the edit fields and then continue to the next question.

Answer 1

Requirement 1 FIFO Method Perpetual inventory Record Cost of goods sold Total cost Quantity unit cost Total cost Purchases unit cost Quantity Inventory on Hand Quantity unit cost total cost 90 $65.00 $ 5,850.00 Jan-01 Jan-05 130 $ 76.00 $ 9,880.00 90 130 $65.00 $76.00 $ 5,850.00 $ 9,880.00 Jan-13 80 $76.00 $ 6,080.00 90 50 $65.00 $76.00 $ 5,850.00 $ 3,800.00 Jan-18 170 $ 86.00 $14,620.00 80 $76.00 $86.00 $ 6,080.00 $14,620.00 170 Jan-26 70 $86.00 $ 6,020.00 80 100 $76.00 $86.00 $ 6,080.00 $ 8,600.00 300 $24,500.00 320 $ 24, 330.00 70 $ 6,020.00 Gross profit $11,030.00 Using the FIFO inventory costing method Requirement 2 LIFO Method Perpetual inventory Record Cost of goods sold Total cost Quantity unit cost Total cost Purchases unit cost Quantity Inventory on Hand Quantity unit cost total cost 90 $65.00 $ 5,850.00 Jan-01 Jan-05 130 $ 76.00 $ 9,880.00 90 130 $65.00 $76.00 $ 5,850.00 $ 9,880.00 Jan-13 80 $65.00 $ 5,200.00 10 130 $65.00 $76.00 $ 650.00 $ 9,880.00 Jan-18 170 $ 86.00 $14,620.00 80 170 $65.00 $86.00 $ 5,200.00 $14,620.00 Jan-26 7 0 $65.00 $ 4,550.00 10 170 $65.00 $86.00 $ 650.00 $14,620.00 300 $24,500.00 320 $25,800.00 70 $ 4,550.00 Gross profit $ 9,560.00 Using the LIFO inventory costing method