1.Sally Smith owns a furniture store. One of her most popular items is a leather recliner.

Following is the recliner inventory activity for August. The recliners on hand at August 1 had a unit cost of $300.

Date

Purchases

Sales

Units on Hand

8/1

Balance fwd

60

8/6

100 units @ $315

`

160

8/15

120 units @ $500

40

8/22

150 units @ $325

190

8/30

100 units @ $530

90

Required:

1)If the furniture store uses the first-in, first-out (FIFO) inventory method and periodic approach, what values would be assigned to ending inventory, cost of goods sold and gross profit?

ACCT310 Final Exam Continued: Exercise 9 Concluded: Page 4 of 5

2)If the furniture store uses the last-in, first-out (LIFO) inventory method and periodic approach, what values would be assigned to ending inventory, cost of goods sold and gross profit?

3)If the furniture store uses the weighted-average inventory method and periodic approach, what values would be assigned to ending inventory, cost of goods sold and gross profit?