You are provided with the following information for Lily Inc. for the month ended June 30, 2020. Lily uses the periodic method for inventory.

Date				Description		Quantity		Unit Cost or Selling Price
June		1		Beginning inventory		39		$40
June		4		Purchase		135		44
June		10		Sale		112		71
June		11		Sale return		18		71
June		18		Purchase		56		45
June		18		Purchase return		12		45
June		25		Sale		66		76
June		28		Purchase		25		48

(a1)

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Calculate cost per unit. (Round answer to 2 decimal places, e.g. 5.25.)

Weighted-average cost per unit

$Enter the weighted-average cost per unit in dollars

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(a2)

Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round average-cost method answers to 2 decimal places, e.g. 1,250.25 and other answers to 0 decimal places, e.g. 1,250.)

		LIFO		FIFO		AVERAGE-COST
The ending inventory		$Enter a dollar amount		$Enter a dollar amount		$Enter a dollar amount
The cost of goods sold		$Enter a dollar amount		$Enter a dollar amount		$Enter a dollar amount
Gross profit		$Enter a dollar amount		$Enter a dollar amount		$Enter a dollar amount

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(a3)

Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 1 decimal place, e.g. 51.2%.)

		LIFO			FIFO			AVERAGE-COST
Gross profit rate		Enter percentages	%		Enter percentages	%		Enter percentages	%

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(b)

Compare the results for the three cost flow assumptions and answer the following questions.

In this period of rising prices, Select a cost flow assumption LIFOAverage-costFIFO gives the highest cost of goods sold and the Select an option lowesthighest gross profit. Select a cost flow assumption Average-costFIFOLIFO gives the lowest cost of goods sold and the Select an option highestlowest gross profit.

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