Calculate ending inventory, cost of goods sold, gross profit, and gross profit r

Question

Calculate ending inventory, cost of goods sold, gross profit, and gross profit rate under periodic method; compare results.

(LO 2, 3) AP

You have the following information for Crystal Inc. for the month ended May 31, 2014. Crystal uses a periodic method for inventory.

Date

Description

Units

Unit Cost or Selling Price

Instructions

1.  

2.  

3.  

Compare results for the three cost flow assumptions.

Date

Description

Units

Unit Cost or Selling Price

May ?1 Beginning inventory ?40 $20 May ?6 Purchase 110 ?23 May ?7 Sale ?90 ?32 May 15 Purchase ?70 ?25 May 18 Sale ?40 ?37 May 24 Purchase ?60 ?26 May 30 Sale ?80 ?38

Explanation / Answer

PART 1

LIFO

FIFO

Average.

6640/280 =23.71

Value of ending inventory =70*23.71 =1660

Units Rate Value Beginning inventory 40 20 800 Purchase 110 23 2530 Purchase 70 25 1750 Purchase 60 26 1560 Material Available For sales 280 6640 Total Sales 210 Closing Stock 70

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