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Tompkins Company reports the following inventory record for November: INVENTORY Date Activity # of Units Cost / Unit November 1 Beginning balance 1 2 0
Tompkins Company reports the following inventory record for November:
INVENTORY
Date Activity # of Units CostUnit
November Beginning balance $
November Purchase
November Sale @ $ per unit
November Purchase
November Sale @ $ per unit
Selling, administrative, and depreciation expenses for the month were $ Tompkins's effective tax rate is percent.
Required:
Calculate the cost of ending inventory and the cost of goods sold under each of the following methods using periodic inventory system:
a What is the gross profit percentage under the FIFO method?
b What is net income under the LIFO method?
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 $ per unit, what would Tompkins report on the balance sheet for inventory?
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