You are provided with the following information for Koetteritz Inc. for the mont
ID: 2397250 • Letter: Y
Question
You are provided with the following information for Koetteritz Inc. for the month ended June 30, 2017. Koetteritz uses the periodic method for inventory.
Date
Description
Quantity
Unit Cost or
Selling Price
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
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
Date
Description
Quantity
Unit Cost or
Selling Price
Explanation / Answer
CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER FIFO METHOD PURCHASES / Purchase Return Sales /Sales Return CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost June , 01 Beginnning inventory 41 $ 40.00 $ 1,640.00 June , 04 Purchases 135 $ 43.00 $ 5,805.00 41 $ 40.00 $ 1,640.00 135 $ 43.00 $ 5,805.00 June , 10 Sales 41 $ 40.00 $ 1,640.00 64 $ 43.00 $ 2,752.00 71 $ 43.00 $ 3,053.00 June , 11 Sales Return -17 $ 43.00 $ -731.00 88 $ 43.00 $ 3,784.00 June , 18 Purchases 55 $45 $ 2,475.00 88 $ 43.00 $ 3,784.00 55 $45 $ 2,475.00 June , 18 Purchases Returns -9 $45 $ -405.00 88 $ 43.00 $ 3,784.00 46 $45 $ 2,070.00 June , 25 Sales 64 $ 43.00 $ 2,752.00 24 $ 43.00 $ 1,032.00 46 $45 $ 2,070.00 June , 28 Purchase 35 $49 $ 1,715.00 24 $ 43.00 $ 1,032.00 46 $45 $ 2,070.00 35 $49 $ 1,715.00 Total 152 0 $ 6,413.00 105 $ 4,817.00 Unit Amoun COGS as per FIFO Method 152 $6,413.00 Closing Balance as per FIFO 105 4817 CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER LIFO METHOD PURCHASES / Purchase Return Sales /Sales Return CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost June , 01 Beginnning inventory 41 $ 40.00 $ 1,640.00 June , 04 Purchases 135 $ 43.00 $ 5,805.00 41 $ 40.00 $ 1,640.00 135 $ 43.00 $ 5,805.00 June , 10 Sales 105 $ 43.00 $ 4,515.00 41 $ 40.00 $ 1,640.00 30 $ 43.00 $ 1,290.00 June , 11 Sales Return -17 $ 43.00 $ -731.00 41 $ 40.00 $ 1,640.00 47 $ 43.00 $ 2,021.00 June , 18 Purchases 55 $45 $ 2,475.00 41 $ 40.00 $ 1,640.00 47 $ 43.00 $ 2,021.00 55 $45 $ 2,475.00 June , 18 Purchases Returns -9 $45 $ -405.00 41 $ 40.00 $ 1,640.00 47 $ 43.00 $ 2,021.00 46 $45 $ 2,070.00 June , 25 Sales 46 $45 $ 2,070.00 18 $ 43.00 $ 774.00 41 $ 40.00 $ 1,640.00 29 $ 43.00 $ 1,247.00 June , 28 Purchase 35 $49 $ 1,715.00 41 $ 40.00 $ 1,640.00 29 $ 43.00 $ 1,247.00 35 $49 $ 1,715.00 Total 152 0 $ 6,628.00 105 $ 4,602.00 Unit Amoun COGS as per LIFO Method 152 $ 6,628.00 Closing Balance as per LIFO 105 $ 4,602.00 CALCULATION OF THE UNIT COST AS PER AVERAGE COST METHOD Unit Rate Amount June , 01 Beginnning inventory 41 $ 40.00 $ 1,640.00 June , 04 Purchases 135 $ 43.00 $ 5,805.00 June , 18 Purchases 55 $45 $ 2,475.00 June , 18 Purchases Returns -9 $45 $ -405.00 June , 28 Purchase 35 $49 $ 1,715.00 $ 257.00 $ 11,230.00 Average Cost Per unit = $ 11,230/$257 = $ 43.70 Ending inventory = 105.0 $ 43.70 $ 4,588.13 Cost of Goods Sold 152.0 $ 43.70 $ 6,641.87 CALCULATION OF Sales Sales June, 10 105 $ 70.00 $ 7,350.00 June, 11 - Return -17 $ 70.00 $ -1,190.00 June, 25 64 $ 76.00 $ 4,864.00 $ 11,024.00 FIFO LIFO Average Cost Sales $ 11,024.00 $ 11,024.00 $ 11,024.00 Cost OF Goods Sold $6,413.00 $6,628.00 $6,641.87 Gross Profit $4,611.00 $4,396.00 $4,382.13 Gross Profit Rate 0.418 0.399 0.398 Gross Profit Rate in % 41.8% 39.9% 39.8% Ending inventory $4,817.00 $4,602.00 $4,588.13
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