You are provided with the following information for Lahti Ltd. for the month ended June 30, 2017. Lahti uses the periodic method for inventory.

Instructions
(a) Calculate
(i) Ending inventory,
(ii) Cost of goods sold,
(iii) Gross profit, and
(iv) Gross profit rate of the two following methods.
(1) FIFO.
(2) Average-cost.
(b) Compare results for the two cost fl ow assumptions.

Transcribed Image Text:

Date June I June 4 June 10 June 11 June 18 June 18 June 25 June 28 Unit Cost or Selling Price £40 43 70 70 46 46 75 50 Description Quantit Beginning inventory Purchase Sale Sale return Purchase Purchase return Sale Purchase 40 135 110 15 10 60 30