Provided the following information for Najera Inc. for the month ended June 30, 2014. Najera uses the periodic method inventory. Date Description Quantity unit cost or selling price June 1 Beginning Inventory 40 $40 June 4 Purchase 135 44 June 10 Sale 110 70 June 11 Sale return 15 70 June 18 Purchase 55 46 June 18 Purchase return 10 46 June 25 Sale 65 75 June 28 Purchase 30 50 A) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods. (1) LIFO (2) FIFO (3) Average cost B) Compare results for the three cost flow assumptions. C) After doing it with the periodic system do it again using the perpetual system. (a) (iii) gross profit: LIFO $ 4,215 FIFO $ 4,645 Average $ 4,414.60 See attatchment if this is hard to read.

Provided the following information for Najera Inc. for the month ended June 30, 2014. Najera uses the periodic method inventory. Date Description Quantity June 1 June 4 June 10 June 11 June 18 June 18 June 25 June 28 Beginning Inventory Purchase Sale Sale return Purchase Purchase return Sale Purchase 40 135 110 15 55 10 65 30 Unit cost or selling price $40 44 70 70 46 46 75 50 A) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods. (1) LIFO (2) FIFO (3) Average cost B) Compare results for the three cost flow assumptions. C) After doing it with the periodic system do it again using the perpetual system. (a) (iii) gross profit: LIFO $ 4,215 FIFO $ 4,645 Average $ 4,414.60