Periodic and Perpetual Systems and Inventory Costing Methods

During July 2014, Micanopy, Inc., sold 500 units of its product 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. For the specific identification method, assume that of the units sold, 200 came from beginning inventory and 300 came from purchase 3.

Determine cost of goods available for sale and ending inventory in units.

	Units	Total
Cost of goods available for sale:	?	$?
Ending inventory:	?

Determine the costs that should be assigned to cost of goods sold and ending inventory under each of the following assumptions. For each alternative, show the gross margin. Round unit costs to the nearest cent and round the final answers to the nearest dollar.

Costs are assigned under the periodic inventory system using: The specific identification method:

Cost of goods sold:	$?
Ending inventory:	$ ?
Gross margin:	$ ?

The average-cost method:

Cost of goods sold:	$
Ending inventory:	$
Gross margin:	$

The FIFO method:

Cost of goods sold:	$
Ending inventory:	$
Gross margin:	$

The LIFO method:

Cost of goods sold:	$
Ending inventory:	$
Gross margin:	$

Costs are assigned under the perpetual inventory system using: The average-cost method

Cost of goods sold:	$ ?
Ending inventory:	$ ?
Gross margin:	$?

The FIFO method

Cost of goods sold:	$ ?
Ending inventory:	$?
Gross margin:	$ ?

The LIFO method

Cost of goods sold:	$ ?
Ending inventory:	$ ?
Gross margin:	$ ?