Ork Saved Exercise 6-4A Calculate inventory amounts when costs are rising (L06-3) [The following information applies to the questions displayed below.) During the year, TRC Corporation has the following inventory transactions. Date Transaction Jan. 1 Beginning inventory Purchase Jul.16 Purchase Oct. 6 Purchase Number of Units 55 135 205 115 510 Unit Cost $ 47 49 52 53 Apr. 7 Total Cost $ 2,585 6,615 10,660 6,095 $25,955 For the entire year, the company sells 441 units of inventory for $65 each. kercise 6-4A Part 1 equired: Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost per # of units # of units unit Cost of Goods Available for Sale $ 2,585 Cost per unit Cost of Goods Sold #of units Cost Ending per unit Inventory 55 $ 47 55 $ 47 $ 2,585 $ 49 Beginning Inventory Purchases: Apr. 7 Jul 16 Oct 6 Total 49 52 135 205 $ 52 135 $ 205 $ 115$ 510 6,615 10,660 6,095 25,955 6,615 10,660 0 53 $ 53 $ mework Saved Exercise 6-4A Part 1 Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue and gross profit. Ending Inventory # of units Cost Ending per unit Inventory Sold FIFO Cost of Goods Available for Sale Cost of Goods Sold Cost of Cost per Cost of Goods #of units Cost per Goods #of units unit Available unit for Sale Beginning Inventory 55 $ 47 $ 2,585 55 $ 47 $ 2,585 Purchases Apr. 7 135 $ 49 6,615 135 $ 49 6,615 Jul. 16 205 $ 52 10,660 205 $ 52 10,660 Oct.6 115 $ 53 6.095 $ 53 0 Total 510 $ 25,955 Sales revenu Gross profit TIDO DU 80 57 mework Saved ror ule enure year, uie Company SenS 441 UMNES I HVERTy To 05 dCII. Exercise 6-4A Part 2 2. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units Cost per unit Cost of Goods Sold # of units Cost Ending per unit Inventory 55 $ 47 $ 2,585 550 $ 47 $ 2,585 Beginning Inventory Purchases: Apr 07 Jul 16 135 $ 49 49 135 $ 2050 $ 6,615 10,660 205 52 $ $ 52 53 6,615 10,660 6.095 25,955 Oct 06 115 GA Total 510 $ Sales revenue Gross profit CD 7 Exercise 6-4A Part 3 3. Using weighted average cost, calculate ending Inventory, cost of goods sold, sales revenue, and gross profit. (Round "Average Cost per unit" to 4 decimal places and all other answers to the nearest whole number.) Cost of Goods Sold - Weighted Average Cost Ending Inventory - Weighted Average Coat Cost of Goods Available for Sale Weighted Average Cout Cost per unit Cost per unit Cost of Goods Available for Sale Cost of Goods Sold # of units Sold # of units # of units in Ending Inventory Ending Inventory Cost per Unit 55 $ 2,585 Beginning Inventory Purchases Apr 07 Jul 16 Oct 06 Total 135 205 115 6,615 10,660 6,095 25.955 510 $ Sales revenue Gross profit For the entire year, the company sells 441 units of inventory for $65 each. Exercise 6-4A Part 4 4. Determine which method will result in higher profitability when inventory costs are rising. Multiple Choice LIFO Weighted-average FIFO Prey 8 of 10
