TDS Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for April. (For specific identification, the April 9 sale consisted of 8 units from beginning inventory and 27 units from the April 6 purchase; the April 30 sale consisted of 12 units from beginning inventory 3 units from the April 6 purchase and 10 units from the April 25 purchase.)

Required
1. Compute cost of goods available for sale and the number of units available for sale.
2. Compute the number of units in ending inventory.
3. Compute the cost assigned to ending inventory using
(a) FIFO,
(b) LIFO,
(c) Weighted average,
(d) Specific identification. (Round all amounts to dollars and cents.)
4. Compute gross profit earned by the company for each of the four costing methods in part3.

Transcribed Image Text:

Date Activities Units Acquired at Cost Units Sold at Retail Apr. Beginning inventory20 units @ $3,000.00 per unit Apr 6 Purchase 30 units $3,500.00 per unit Apr 9 Sales Apr. 17 Purchase...5 units@ $4,500.00 per unit Apr. 25 Purchase ....10 units@$4,800.00 per unit Apr. 30 Sales 35 units12000.00 per unit 25 units 60 units $14.000.00 per unit Total.65 units