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Transactions for the month of October were: Purchases Sales Oct. 1 (balance) 2,000 @ $3.20 Oct. 2 900 @ $7.00 3 3,700 @ 3.10 6
- Transactions for the month of October were:
Purchases Sales
Oct. 1 (balance) 2,000 @ $3.20 Oct. 2 900 @ $7.00
3 3,700 @ 3.10 6 2,400 @ 7.00
7 1,400 @ 3.30 9 1,400 @ 7.00
15 2,600 @ 3.40 10 500 @ 7.00
22 1,850 @ 3.50 18 2,000 @ 7.00
25 400 @ 7.00
Using the periodic inventory system, please answer the following questions:
- What are the number of units in ending inventory and what are the number of units in Cost of Goods Sold?
- What are the ending inventory balance and Cost of Goods Sold amount using the average cost method?
- What are the ending inventory balance and Cost of Goods Sold amount using the FIFO method?
- What are the ending inventory balance and Cost of Goods Sold amount using the LIFO method?
- Given the data above, compute the gross profit for both the FIFO and LIFO methods.
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