Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method.

Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Unit	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
May 1
11
23
26
29
Totals

Compute gross profit using the FIFO inventory costing method.

Gross profit is $

using the FIFO inventory costing method.

Requirement 2. Compute cost of goods sold and gross profit using the LIFO inventory costing method.

Begin by computing the cost of goods sold and cost of ending merchandise inventory using the LIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Unit	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
May 1
11
23
26
29
Totals

Compute gross profit using the LIFO inventory costing method.

Gross profit is $

using the LIFO inventory costing method.

i More Info May 1 Beginning merchandise inventory 11 Purchase 16 tires @ 10 tires @ 12 tires @ 14 tires @ $ $ $ $ 65 each 78 each 88 each 80 each 23 Sale 26 Purchase 29 Sale 18 tires @ $ 88 each Print Done