Question
You are provided with the following information for Waterway Inc. for the month ending June 30, 2020. Waterway uses the periodic method for inventory. Date
You are provided with the following information for Waterway Inc. for the month ending June 30, 2020. Waterway uses the periodic method for inventory.
Date | Description | Quantity | Unit Cost or | |||||
---|---|---|---|---|---|---|---|---|
June | 1 | Beginning inventory | 42 | $38 | ||||
June | 4 | Purchase | 139 | 41 | ||||
June | 10 | Sale | 105 | 72 | ||||
June | 11 | Sale return | 17 | 72 | ||||
June | 18 | Purchase | 54 | 44 | ||||
June | 18 | Purchase return | 10 | 44 | ||||
June | 25 | Sale | 67 | 77 | ||||
June | 28 | Purchase | 32 | 47 |
Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 1 decimal place, e.g. 51.2%.)
LIFO | FIFO | AVERAGE-COST | |||||||
---|---|---|---|---|---|---|---|---|---|
Gross profit rate | % | % |
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Computation of Total Sales Selling Price Product 7200 6336 7700 5159 11495 Net Units 88 67 ...Get Instant Access to Expert-Tailored Solutions
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