Question

Anthony Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

Date Activities Units Acquired at Cost Units Sold at Retail
Mar. 1 Beginning inventory 50 units @ $50/unit
Mar. 5 Purchase 200 units @ $55/unit
Mar. 9 Sales 210 units @ $85/unit
Mar. 18 Purchase 60 units @ $60/unit
Mar. 25 Purchase 100 units @ $62/unit
Mar. 29 Sales 80 units @ $95/unit
Totals 410 units 290 units
Information given:


Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9sale consisted of 40 units from beginning inventory and 170 units from the March 5 purchase; the March 29 sale consisted of 20 units from the March 18 purchase and 60units from the March 25 purchase. (Due to rounding, the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales. Round yourper unit costs to 3 decimal places and inventory balances to the nearest dollar amount. Omit the "$" sign in your response.)

Ending
Inventory
(a) FIFO $ 7400
(b) LIFO $ 6840
(c) Weighted average $ 7176
(d) Specific identification $ 7030

Now I need to compute gross profit earned by the company for each of the four costing methods.

LIFO is 8990
I can't figure out the FIFO, Weighted Average, and Specific Identification.
I really appreciate any help. Thanks.

Answer 1

Calculation of cost of goods sold under FIFO(first in first out) inventory system:Gross profit = Sales revenue - Cost of goods sold=$25,450 - $16,140= $9,310Therefore, Gross profit under FIFO systme is $9,110Calculation of costof goods sold underWeighted average costing system:Gross profit = Salesrevenu - Cost of goods sold=$25,450 - $16,124=$9,326Therefore, Gross profit under Weihted averagecosting is $9,326(Note: Do not post more than two multiples. Post the remaing problem in another postage then i will give responce for that)