1. (6 points) The following pertain to the cost of Hs only inventory item:

• Inventory on hand, January 1 0 units
• Purchases, January 2 75 units @ $15 per unit
• Purchases, January 12 95 units @ $16 per unit
• Purchases, January 16 35 units @ $17 per unit
• Purchases, January 20 40 units @ $18 per unit
• Purchases, January 26 15 units @ $19 per unit

260

• Sales, January 5 70 units @ $30 per unit
• Sales, January 14 80 units @ $30 per unit
• Sales, January 18 40 units @ $30 per unit
• Sales, January 25 30 units @ $30 per unit
• Sales, January 27 25 units @ $30 per unit

245 (245 x $30 = $7,350)

Calculate COGS AND GP for January AND EI as of 01-31 under the following assumptions:

• H uses periodic LIFO

EI:

COGS:

Gross profit:

• H uses periodic FIFO

EI:

COGS:

Gross profit:

• H uses a weighted average method and rounds the unit cost to the nearest penny. H makes sure that exactly 100% of its COGAS ends up either as EI or COGS.

EI:

COGS:

Gross profit: