Question

Inventory information for Part 311 of Sheffield Corp. discloses the following information for the month of June.

June 1		Balance		303 units @ $14		June 10		Sold		201 units @ $34
11		Purchased		798 units @ $17		15		Sold		498 units @ $35
20		Purchased		497 units @ $18		27		Sold		299 units @ $38

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?

The ending inventory at LIFO?

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO?

Gross Profit (FIFO)

Answer 1

Answer 1.

Answer 2.

Sales Revenue = 201 * $34 + 498 * $35 + 299 * $38
Sales Revenue = $35,626

Cost of Goods Sold = $16,057

Gross Profit = Sales Revenue - Cost of Goods Sold
Gross Profit = $35,626 - $16,057
Gross Profit = $19,569