Question
Given: Company NOPs inventory activity in the month of June 2020: Beginning inventory, June 1 400 units at $10 each Purchase on account June 12
Given: Company NOPs inventory activity in the month of June 2020:
Beginning inventory, June 1 | 400 units at $10 each |
Purchase on account June 12 | 600 units at $11 each |
Sale on account June 14 | 700 units at $15 each |
Required:
A. Choose the column that represents the June 2020 financial statement where the line item will appear and fill in the dollar amount and calculation using the LIFO inventory method. Include your calculation. [5 points]
B. Choose the column that represents the June 2020 financial statement where the line item will appear and fill in the dollar amount and calculation using the FIFO inventory method. Include your calculation. [5 points]
Use the format in the attachment below
- LIFO [5 points]
| Income Statement | Statement of Cash Flows | Balance Sheet |
1. Cost of Goods Sold |
|
|
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2. Inventory
|
|
|
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3. Sales
|
|
|
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4. Gross Profit |
|
|
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- FIFO [5 points]
| Income Statement | Statement of Cash Flows | Balance Sheet |
1. Cost of Goods Sold |
|
|
|
2. Inventory |
|
|
|
3. Sales |
|
|
|
4. Gross Profit |
|
|
|
- Calculate the Gross profit ratio and Inventory Turnover ratio under the LIFO method and support your answer with a calculation. [4 points] Use the format in the attachment below
Gross profit ratio
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Inventory Turnover ratio
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