Question
During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost January 1 Beginning inventory 57 $49
During the year, TRC Corporation has the following inventory transactions.
Date | Transaction | Number of Units | Unit Cost | Total Cost |
---|---|---|---|---|
January 1 | Beginning inventory | 57 | $49 | $2,793 |
April 7 | Purchase | 137 | 51 | 6,987 |
July 16 | Purchase | 207 | 54 | 11,178 |
October 6 | Purchase | 117 | 55 | 6,435 |
518 | $27,393 |
For the entire year, the company sells 443 units of inventory for $67 each.
Required: 1-a & b. Using FIFO, calculate ending inventory and cost of goods sold. 1-c & d. Using FIFO, calculate sales revenue and gross profit. 2-a & b. Using LIFO, calculate ending inventory and cost of goods sold. 2-c & d. Using LIFO, calculate sales revenue and gross profit. 3-a & b. Using weighted-average cost, calculate ending inventory and cost of goods sold. 3-c & d. Using weighted-average cost, calculate sales revenue and gross profit. 4. Determine which method will result in higher profitability when inventory costs are rising.
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