o are provided with the following information for Guillaume Inc. for the month e

Question

o are provided with the following information for Guillaume Inc. for the month ended June 30, 2016. Guillaume uses the periodic method for inventory Quantity Unit Cost or Selling Priss June 1 Beginning inventory June 4 Purchase June 10 Sale June 11 Sale return June 18 Purchase June 18 Purchase return June 25 Sale June 28 Purchase 40 135 110 15 $40 70 70 46 46 75 50 10 65 30 Instructions (a) Calculate (i) ending inventory, (ii) cost of goods sold, (ii) gross profit and (iv) gro profit rate under each of the follows methods. Show all work (1) LIFO (2) FIFO (3) Average cost Solution # Extra Credit 1) LIFO METHOD-ENDING INVENTORY Sale Sale Rewan IS 116 Saae Pur chas

Explanation / Answer

Date Description qty rate amount ($) Jun-01 opening 40 40 1600 Jun-04 purchase 135 44 5940 Jun-10 sales 110 44 4840 Jun-11 sale return 15 44 660 Jun-18 purchase 55 46 2530 Jun-18 purchase return 10 46 460 Jun-25 sale 65 46 2950 45*46+20*44 Jun-28 purchase 30 50 1500 ending inventory 90 Total value of sales 7130 value of ending inventory 3800 Cost of goods sold 7310 gross profit -180 UNDER FIFO Date Description qty rate amount ($) Jun-01 opening 40 40 1600 Jun-04 purchase 135 44 5940 Jun-10 sales 110 4680 40*40+70*44 Jun-11 sale return 15 40 600 Jun-18 purchase 55 46 2530 Jun-18 purchase return 10 46 460 Jun-25 sale 65 44 2860 65*44 Jun-28 purchase 30 50 1500 ending inventory 4830 Total value of sales 6940 Cost of goods sold 6280 gross profit 660 under weighted average Date Receipts Issues Balance Qty Rate Amount Qty Rate Amount Qty Rate Amount Jun-01 40 40 1600 Jun-04 135 44 5940 175 43.08571 7540 Jun-10 110 43.08571 4739.429 65 43.08571 2800.571 Jun-11 15 43.08571 646.2857 80 43.08571 3446.857 Jun-18 55 46 2530 135 44.27302 5976.857 Jun-18 10 46 460 125 44.13486 5516.857 Jun-25 65 44.13486 2868.766 60 44.13486 2648.091 Jun-28 30 50 1500 90 46.0899 4148.091 ending inventory 4148.091 total sales 6961.909 Cost of goods sold 8580 Gross profit -1618.09

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