During July 20x2, Servex sold 250 units of its product Dervex for 2,000 . The following units were available:

A sale of 100 units of Dervex was made after purchase 1, and a sale of 150 units of the product was made after purchase 4. Of the units sold, 100 came from beginning inventory and 150 came from purchases 3 and 4 .
Determine cost of goods available for sale and ending inventory in units. Then determine the costs that should be assigned to cost of goods sold and ending inventory under each of the following assumptions: (1) Costs are assigned under the periodic inventory system using

(a) the specific identification method,

(b) the weighted-average-cost method,

(c) the FIFO method, and

(d) the LIFO method; (2) Costs are assigned under the perpetual inventory system using

(a) the weighted-average-cost method,

(b) the FIFO method, and

(c) the LIFO method. For each alternative, show the gross profit. Round unit costs and totals.

Transcribed Image Text:

Beginning Inventory Purchase 1 Purchase 2 Units Cost 100 40 60 70 123456 2 Purchase 3 Purchase 4 80 Purchase 5 90