1. Compute costs 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 FIFO, LIFO, weighted average, and specific identification (round to 2 decimal places)

4. Compute gross profit earned by the company for each of the 4 methods.

PRINCIPLES OF ACCOUNTING I Harry's House of Fashions uses a perpetual inventory system. It entered into the following calendar-year 2013 purchases and sales transactions: Jan. 1 Beginning inventory 620 units @ $45/unit February 10 Purchase 310 units @ $42/unit March 13 Purchase 120 units @ $30/unit March 15 Sales 770 units @ $85/unit August 21 Purchase 190 units @ $50/unit Sept. 5 Purchase 520 units @ $48 Sept. 10 Sales 710 units @ $85 Totals 1760 units 1480 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 (D) specific identification- 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: 3a FIFO Method: Date 1/1 2 Compute the gross profit earned under each of the three methods: Inventory Balance Units Unit Cost Total Compute the number of units in ending inventory: 4 Cost of Goods Sold Units Unit Cost Total FIFO Sales Cost of Goods Sold Gross Profit LIFO Total Cost of Goods Sold Ending Inventory Weighted Average Specific Identification 3b LIFO Method: Date 1/1 Cost of Goods Sold Units Unit Cost Total Inventory Balance Units Unit Cost Total Total Cost of Goods Sold Ending Inventory 3c Weighted Average Method: Date 1/1 Cost of Goods Sold Units Unit Cost Total Inventory Balance Units Unit Cost Total Total Cost of Goods Sold Ending Inventory Spec ID Date 1/1 Cost of Goods Sold Units Unit Cost Total Total Cost of Goods Sold Ending Inventory Inventory Balance Units Unit Cost Total