Required information

Exercise 6-5A Calculate inventory amounts when costs are declining (LO6-3)

Skip to question

[The following information applies to the questions displayed below.]

During the year, Trombley Incorporated has the following inventory transactions.

Date		Transaction	Number of Units			Unit Cost			Total Cost
Jan.	1	Beginning inventory		25		$	27			$	675
Mar.	4	Purchase		30			26				780
Jun.	9	Purchase		35			25				875
Nov.	11	Purchase		35			23				805
				125						$	3,135

For the entire year, the company sells 98 units of inventory for $35 each.

Exercise 6-5A Part 2

2. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

Required information Exercise 6-5A Calculate inventory amounts when costs are declining (LO6-3) (The following information applies to the questions displayed below.) During the year, Trombley Incorporated has the following inventory transactions. Date Transaction Jan. 1 Beginning inventory Mar. 4 Purchase Jun. 9 Purchase Nov.11 Purchase Number of Units 25 30 35 35 125 = Unit Cost $ 27 26 25 23 Total Cost $ 675 780 875 805 $3,135 = For the entire year, the company sells 98 units of inventory for $35 each. Exercise 6-5A Part 2 2. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Sold # of units LIFO Cost of Goods Available for Sale Cost of Cost per Goods # of units unit Available for Sale Beginning Inventory Purchases: Mar 04 Cost Ending per unit Inventory Jun 09 Nov 11 Total Sales revenue Gross profit