Inventory Cost FlowsLIFO Growtop Company increased the balance of its inventory of rooftop miniature greenhouses from 200
Question:
Inventory Cost Flows—LIFO Growtop Company increased the balance of its inventory of rooftop miniature greenhouses from 200 units at a total cost of $30,000 on April 1 to 250 units on April 30. Since inventory costs also have been increasing, Growtop management is worried about whether it is maintaining a reasonable gross profit percent- age. Growtop uses the LIFO inventory cost flow assumption for its greenhouses. You are given the following information about purchases and sales in April:
Sales revenue for April was $200,000.
a. Compute the amount to be reported as inventory at April 30.
b. Compute Growtop’s cost of goods sold and gross profit for April.
c. Compute the gross profit percentage and inventory turnover for April.
Step by Step Answer:
Financial Accounting A Decision Making Approach
ISBN: 9780471328230
2nd Edition
Authors: Thomas E. King, Valdean C. Lembke, John H. Smith