Question
1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending inventory and
1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 3. Compute the gross margin for FIFO method and LIFO method.
| Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||||||
| Jan. | 1 | Beginning inventory | 225 | units | @ $11.00 | = | $ | 2,475 | ||||||||
| Jan. | 10 | Sales | 150 | units | @ $41.00 | |||||||||||
| Mar. | 14 | Purchase | 340 | units | @ $16.00 | = | 5,440 | |||||||||
| Mar. | 15 | Sales | 300 | units | @ $41.00 | |||||||||||
| July | 30 | Purchase | 425 | units | @ $21.00 | = | 8,925 | |||||||||
| Oct. | 5 | Sales | 395 | units | @ $41.00 | |||||||||||
| Oct. | 26 | Purchase | 125 | units | @ $26.00 | = | 3,250 | |||||||||
| Totals | 1,115 | units | $ | 20,090 | 845 | units | ||||||||||
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Glencoe Accounting
Authors: McGraw-Hill
1st Edition
0021400881, 9780021400881
