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Surf Deals had the following inventory (surfboards) information available for June and records their inventory using the periodic inventory method. Date Transaction Units Unit Cost

Surf Deals had the following inventory (surfboards) information available for June and records their inventory using the periodic inventory method.

Date Transaction Units Unit Cost

June 1 Beginning inventory 100 $200

June 2 Purchase 100 $220

June 5 Sale @ $350 per unit (75)

June 18 Purchase 200 $225

June 25 Purchase 100 $230

June 29 Sale @ $360 per unit (200)

  1. Assume that the company uses the FIFO inventory method. Develop an inventory worksheet. (3 Marks)

  1. What is the total dollar value of the ending inventory on June 30 and the Cost of Goods Sold for June. (3 Marks)

Inventory: ___________ Cost of Goods Sold: ___________

  1. Assume that the company uses the periodic approach and Weighted Average inventory method. What is the total dollar value of the ending inventory on June 30 and its Cost of Goods Sold for June? (3 Marks)

Inventory: ___________ Cost of Goods Sold: ___________

  1. Which method would cause Surf Deals to have the highest gross margin? Why? (1 Mark)

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