Selling, administrative, and depreciation expenses for the month were $16,000. Tompkins's effective tax rate is 25 percent.

Required:

1. Calculate the cost of ending inventory and the cost of goods sold under each of the following methods using periodic inventory system:

2-a. What is the gross profit percentage under the FIFO method?

2-b. What is net income under the LIFO method?

3. Tompkins applied the lower of cost or market method to value its inventory for reporting purposes at the end of the month. Assuming Tompkins used the FIFO method and that inventory had a market replacement value of $19.50 per unit, what would Tompkins report on the balance sheet for inventory?

REQUIRED 1: Calculate the cost of ending inventory and the cost of goods sold under each of the following methods using periodic inventory system: (Do not round intermediate calculations.)

		Ending Inventory	Cost of Goods Sold
a.	First-in, first-out	?	13,600
b.	Last-in, first out	3,500	14,300
c.	Weighted average	3,956	13,844

REQUIRED 2:

a. What is the gross profit percentage under the FIFO method? (Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)

b. What is net income under the LIFO method?

2-A	Gross profit percentage under FIFO	61.14	%
2-B	Net income under LIFO	?

Tompkins Company reports the following inventory record for November: INVENTORY Activity Beginning balance Purchase Sale (@ $50 per unit) Purchase Sale (@ $50 per unit) Date November 1 November 4 November 7 November 13 November 22 # of Units 100 300 200 500 500 Cost/Unit $16 19 21 Required 1 Required 2 Required 3 a. What is the gross profit percentage under the FIFO method? (Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) b. What is net income under the LIFO method? 61.14 % 2- a. 2- b. Gross profit percentage under FIFO Net income under LIFO $ 3,290