Question

Tier Il Company uses a periodic inventory system. Details for the inventory account for the month of January 2007 are as follows: Per unit price Units Total Balance, 1/1/2007 Purchase, 1/15/2007 Purchase, 1/28/2007 200 $5.00 5.30 $1,000 530 100 100 5.50 550 An end of the month (1/31/2007) inventory showed that 120 units were on hand. 11 How many units did the company sell during January 2007? a. 80 b. 120 C. 200 d. 280 12. If the company uses FIFO, what is the value of the ending inventory? a. $520 b. $600 c. $656 d. $1,424 If the company uses LIFO, what is the value of the ending inventory? a. $520 b. $600 c. $656 d. $1,480 13. 14. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month? a. $1,376 b. $1,424 $2,800 d. $3,000 C.

PLease show work and explain how to do these

Answer 1

Answer 11) hoW many Units of Sales = 400-120 12) FIFO Ending inventory = 13) LIFO Enging invenotry = D) 280 C) 656 B) 600 A) 1,376 14) FIFO Gross Profit Sales 280 10 = 2800 LESS: Cost of Goods Sold 1424 GrossProfit 1376

Periodic : FIFO Goods Purchasd Cost of Goods Sold Inventory Balance cost of Goods Available for Cost of Cost Per Ending # of Units # of Cost Per Cost Per Unit Goods Sold Units of Units sales sold Unit Unit Inventory Beginning inventory 1000 200 5 1000 5 0 200 Purchases 5.3 530 5.3 5.3 Jan-15 100 80 424 20 106 5.5 550 5.5 5.5 550 Jan-28 100 C 100 Totals 400 280 1424 120 656 2080 Periodic : LIFO Cost of Goods Sold Goods Purchasd Inventory Balance cost of Goods Available for Cost Per Ending Cost Per Unit #of Units Cost of of Cost Per Goods Sold Units of Units sales sold Unit Inventory Unit 5.0 80 5,0 400 5.0 600 Beginning inventory 200 1000 120 Purchases 5.3 530 5.3 530 5.3 Jan-15 100 100 0 0 5.5 550 5.5 550 5.5 Jan-28 100 100 0 Totals 400 2080 280 1480 120 600

Note For Any Further Clarification Plases Use the Comment Box.Thank You Very much