Question

Trentory information for Part 311 of Blue Carp, disclases the following information for the month of Jane 11 20 Balance Purchased Purchased 299 units 803 units 505 units 516 $19 $21 June 10 15 2 7 Sold Sold Bold 1986 units 50 unts $40 297 units $13 Assuming that the periodic ventory method is used, compute the cost of goods sold and ending inventory under (1) UFO and (2) FIFO. (1) LIFO 2) FIFO Cost of Goods Sold Ending Inventory 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

Date # of Units June 1 June 11 June 20 Total Cost of goods available for sale Cost of goods Unit cost available for sale 299 $ 16 $ 803 $ 19 15,257 505$ 21 10,605 1,607 $ 30,646 Total Units sold (196 +502 +297) 1 9 95 (1) LIFO Date # of Units June 20 June 11 (995 - 505) Total Cost of goods sold Unit cost cost of goods sold 505 $ 21 $ 10,605 490 $ 19 9,310 995 19,915 Ending Inventory Cost of goods availble for sale $ 30,646 Less: Cost of goods sold (19,915) Ending Inventory $ 10,731 Note: Under LIFO method goods bought last should be sold first

(2) FIFO Date # of Units June 1 June 11 (995 - 299) Cost of goods sold Unit cost cost of goods sold 299 $ 16 $ 4,784 696 $ 19 13,224 995 18,008 Ending Inventory Cost of goods availble for sale $ 30,646 Less: Cost of goods sold (18,008) Ending Inventory $ 12,638 Note: Under FIFO Method goods bought first should be sold first (1) LIFO Cost of goods sold Ending Inventory 19,915 10,731 (2) FIFO 18,008 12,638

Prepetual Inventory Method (LIFO) Date Purchase Inventory Balance Cost of goods sold Cost of goods Unit cost sold Ending # of Units Unit cost Purchase cost # of Units 16 June 1 June 10 June 11 196 $ 16 3,136 803 $ 19 15,257 June 15 502 $ 19 9,538 June 20 505 $ # of Units Unit cost Inventory 299 $ 16 4,784 103 $ 16 1,648 103 $ 16 1,648 803 $ 19 15,257 103 $ 16 1,648 301 $ 19 5,719 103 $ 16 1,648 301 $ 19 5,719 505 $ 21 10,605 103 $ 16 1,648 301 $ 19 5,719 208 $ 21 4,368 612 11,735 21 10,605 June 27 June 27 297 $ 21 6,237 Total 18,911 Ending Inventory # of Units 16 Unit cost 103 $ 301$ 208 $ 612 Ending Inventory $ 1,648 5,719 4,368 $ 11,735 Ending Inventory $ 11,735

Prepetual FIFO Date Purchase Cost of goods sold Cost of goods # of Units Unit cost sold # of Units Unit cost Purchase cost June 1 June 10 June 11 196 $ 16 3,136 1,648 803 $ 19 15,257 Inventory Balance Ending # of Units Unit cost Inventory 299 $ 16 4,784 103 $ 16 103 $ 16 1,648 803 $ 19 15,257 - $ - 404 $ 19 7,676 . $ . 404 $ 19 7,676 505 $ 21 10,605 June 15 L 103 $ 399 $ 16 19 7 1,648 ,581 June 20 10,605 June 27 297 $ 19 5,643 107 $ 505 $ 612 19 21 2,033 10,605 12,638 Total 18,008 - Sales revenue Date # of Units sold June 10 June 15 June 27 sale cost 196 $ 502 $ 40 297 $ 43 995 Sale revenue | 7,448 20,080 12,771 40,299

$ Gross Profit Sales revenue Less: Cost ofgoods sold Gross Profit 40,299 (18,008) 22,291 $ Gross Profit (FIFO) $ 22,291