Question
Comparing amounts for cost of goods sold, ending inventory, and gross profit--- FIFO and LIFO Assume the Models and More store bought and sold a
Comparing amounts for cost of goods sold, ending inventory, and gross profit--- FIFO and LIFO
Assume the Models and More store bought and sold a line of dolls during December as follows:
Dec 1 | Beginning merchandise inventory | 13 units @ $11 each |
Dec 8 | Sale | 9 unites @ 20 each |
Dec 14 | Purchase | 17 units @ 13 each |
Dec 21 | Sale | 13 units @ 20 each |
Requirements
Compute cost of goods sold, cost of ending merchandise inventory, and gross profit using FIFO inventory costing methods.
Compute the cost of cost of goods sold, cost of ending merchandise inventory, and gross profit using the LIFO costing method.
Which method results in a higher cost of goods sold?
Which method results in a higher cost of ending merchandise inventory?
Which method results in a higher gross profit?
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