Required information [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 Apr. 7 Purchase Jul. 16 Purchase Oct. 6 Purchase Number of Units Unit Cost 55 $ 47 135 49 205 52 115 53 510 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. Required: 1. 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 Cost per Cost of Goods Available for Sale # of units # of units Cost of Goods Sold # of units Cost Ending per unit Inventory unit unit $ 0 $ 0 $ 0 Beginning Inventory Purchases: $ 0 0 Apr. 7 $ 0 0 Jul. 16 Oo oo s 0 0 Oct.6 0 $ Total For the entire year, the company sells 441 units of inventory for $65 each. Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. FIFO Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold # of units Cost per unit Cost of Goods Available for Sale Cost per # of units unit Cost of Goods Sold # of units Cost Ending per unit Inventory s 0 $ 0 $ 0 Beginning Inventory Purchases: Apr. 7 Jul. 16 s 0 0 $ 0 0 OOOO $ 0 0 Oct.6 Total 0 $ Sales revenue Gross profit 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 Beginning Inventory Purchases: Apr 07 Jul 16 Oct 06 Total Sales revenue Gross profit Soved For the entire year, the company sells 441 units of inventory for $65 each. 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 Available for Sale Cost of Goods Sold - Weighted Average Cost Ending Inventory - Weighted Average Cost Weighted Average Cost Cost per # of units Cost of Goods # of units Available for Sold Sale Cost of Goods Sold Cost per Unit unit # of units in Ending Inventory Cost per unit Ending Inventory 55 $ 2.585 Beginning Inventory Purchases: Apr 07 Jul 16 Oct 06 Total 135 205 6,615 10,660 115 6,095 25,955 510 $ Sales revenue Gross profit 4. Determine which method will result in higher profitability when inventory costs are rising. Multiple Choice LIFO FIFO O Weighted-average 9 Next >
