Powell Chemical’s inventory of NC221 on January 1 of one year, had an inventory of 7,000 gallons, costing $.52 per gallon. In addition to this beginning inventory, Powell Chemical made the following purchases during the next six months:

Powell Chemical’s inventory on June 30 was 11,000 gallons. During this sixmonth period, the firm sold all its NC221 at $.69 per gallon. Assume that no liquid was lost through evaporation or leakage.
Instructions 1. Find the cost of the ending inventory by the following methods:

a. Weighted-average-cost (Round to two decimal places.)

b. First-in, first-out

c. Last-in, first-out 2. Determine the cost of goods sold according to the three methods of costing inventory.
3. Determine the amount of the gross profit according to the three methods of costing inventory.

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Date Quantity (Gallons) Cost per Gallon Total Cost Jan. 1 Inventory 7,000 $.52 $3,640 26 10,000 .52 5,250 Feb. 4 21 12,000 .53 6,360 9,000 .53 4,770 Mar. 7 11,000 .53 5,885 24 8,000 .55 4,400 Apr. 19 9,000 .55 4,950 May 31 6,000 .55 3,300 June 15 4,000 .56 2,240