1. Compute cost of goods available for sale and the number of units available for sale.2. Compute the number of units remaining in ending inventory.3. Compute the cost of goods sold for the year and the cost assigned to ending inventory using (a) FIFO, (b) LIFO, and (c) weighted average ? round per unit cost to tenth of a cent and inventory balances to the dollar.4. Compute the gross profit earned by the company for each of the costing methods in part 3."m~

PRINCIPLES OF ACCOUNTING I CHAPTER 5 EXERCISE Harry's House of Fashions uses a perpetual inventory system. It entered into the following calendar-year 2013 purchases and sales transactions: Jan. 1 April 1 April 5 July 7 Aug.12 Sept. 2 Totals Beginning inventory 60 units Purchase 75 units Sales Purchase 30 units Purchase 40 units Sales 205 units @ $40/unit @ $48/unit 50 units @ $80/unit @ $42/unit @ $50/unit 65 units @ $80/unit 115 units Required 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units remaining in ending inventory. 3. Compute the cost of goods sold for the year and the cost assigned to ending inventory using (a) FIFO, (b) LIFO, and (c) weighted average - round per unit cost to tenth of a cent and inventory balances to the dollar. 4. Compute the gross profit earned by the company for each of the costing methods in part 3. 1 Calculate cost of goods available for sale and number of units available for sale: Units Cost per Unit 3a FIFO Method: Total Beginning inventory April 1 July 7 August 12 Units available for sale Cost of units available for sale Date 1/1 4/1 Cost of Goods Sold Units Unit Cost Total Inventory Balance Units Unit Cost Total 4/5 7/7 2 8/12 Units available for sale (from Part 1) Units sold Units in ending inventory 4 Compute the number of units in ending inventory: 9/2 Compute the gross profit earned under each of the three methods: FIFO Sales Cost of Goods Sold Gross Profit LIFO Total Cost of Goods Sold Ending Inventory Weighted Average 3b LIFO Method: Date 1/1 4/1 Cost of Goods Sold Units Unit Cost Total Inventory Balance Units Unit Cost Total 4/5 7/7 8/12 9/2 Total Cost of Goods Sold Ending Inventory 3c Weighted Average Method: Date 1/1 4/1 4/5 7/7 8/12 Cost of Goods Sold Units Unit Cost Total Inventory Balance Units Unit Cost Total 9/2 Total Cost of Goods Sold Ending Inventory