During July 2014, Micanopy, sold 500 units of its products Empire for $8,000. The following units were available.

Units Cost

Beginning Inventory 200 $2

Purchase 1 80 $4

Purchase 2 120 $6

Purchase 3 300 $9

Purchase 4 180 $12

A sale of 500 units was made after purchase 3. Of the units sold, 200 came from beginning inventory and 300 came from purchase 3.

Determine the costs of goods available for sale and ending inventory in units. Then determine the costs that should be assigned to cost of goods sold and ending inventory under ach of the following assumptions. (For each alternative, show the gross margin. Round unit costs to cents and totals to dollars.)

Costs are assigned under the periodic inventory system using a.) the specific identification method, b) the average-cost method, c.) FIFO method and d.) LIFO method

Costs are assigned under the perpetual inventory system using a.) the average-cost method, b.) the FIFO method, and c) the LIFO method

E7A. Periodic and Perpetual Systems and Inventory Costing Methods
Cost of goods available for sale and ending inventory in units
													Units		Cost	Total
Beginning inventory													200		$ 2	$ 400
Purchase 1													80		4	320
Purchase 2													120		6	720
Purchase 3													300		9	2,700
Purchase 4													180		12	2,160
Cost of goods available for sale													880			$6,300
Sale in units													500
Ending inventory in units													380
1.	Periodic inventory system
	a.	Specific identification method:
		Sales														$8,000
		Cost of goods available for sale
		Less ending inventory*
		Cost of goods sold
		Gross margin														$4,900
		*	Purchase 1		80		units