CCO Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for April.
Date | Activities | Units Acquired at Cost | Units Sold at Retail |
Apr. l
| Beginning inventory | 15 units @ $3,000/unit |
|
Apr. 6 | Purchase | 35 units @ $3,500/unit |
|
Apr. 9 | Sales |
| 18 units @ $12,000/unit |
Apr. l7 | Purchase | 8 units @ $4,500/unit |
|
Apr. 25 | Purchase | 10 units @ $4,580/unit |
|
Apr. 30 | Sales |
| 30 units @ $l4,000/unit |
Total | 68 units | 48 units |
Required
1. Compute cost of goods available for sale and the number of units available for sale.
2. Compute the number of units in ending inventory.
3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round per unit costs to three decimals, but inventory balances to the dollar.) For specific identification, the April 9 sale consisted of 8 units from beginning inventory and 10 units from the April 6 purchase; the April 30 sale consisted of 20 units from the April 6 purchase and 10 units from the April 25 purchase.
4. Compute gross profit earned by the company for each of the four costing methods in part 3.
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