Help Save&Exit; S 18 gon Oct. 1 Oct. 5 Purchase Oct. 9 Sales Oct. 18 Purchase Oc
ID: 2540813 • Letter: H
Question
Help Save&Exit; S 18 gon Oct. 1 Oct. 5 Purchase Oct. 9 Sales Oct. 18 Purchase Oct. 25 Oct.29 Sales inventory 250 unitss54.00/unit 300 units $59.00/unit rt 4 of 4 10 units $89.00/unit 160 units$64.00/unit Odt 25 Purchase 300 unis s66.oo/unt 0212:41 280 units 1,010 units 690 units For specific identification, the October 9 sale consisted of 140 units from beginning inventory and 270 units from the October 5 purchase; the Qctober 29 sale consisted of 120 units from the October 18 purchase and 160 unfts purchase. (Round your final answers to two decimal places.) from the October 25Explanation / Answer
Costing Method
1. FIFO METHOD
TOTAL SALES
410×89=36490
280×99=27720
TOTAL= 64210
COST OF GOODS SOLD
1-OCT 250×54=13500
5-OCT 160×59=9440
5-OCT 140×59=8260
18-OCT 140×64=8960
TOTAL OF COST OF GOODS SOLD=40160
GROSS PROFIT=SALES-COST OF GOODS SOLD
64210-40160=24050
2. LIFO METHOD
TOTAL SALES AS PER ABOVE CALCULATIONS =64210
COST OF GOODS SOLD
5-OCT 300×59=17700
1-OCT 110×54=5940
25-OCT 280×66=18480
TOTAL =42120
GROSS PROFIT=64210-42120=22090
3. AVERAGE COST METHOD
TOTAL SALES 64210
COST OF GOODS SOLD
AVERAGE OF PRICE 54+59÷2=56.5
410×56.5=23165
AGAIN AVERAGE COST 56.5+64+66÷3=62.16
280×62.16=17405
TOTAL=40570
GROSS PROFIT =64210-40570=23640
4.SPECIFIC IDENTIFICATION METHOD
TOTAL SALES=64210
COST OF GOODS SOLD
140 UNITS GOODS CONSIDERED FROM BEGINNING I.E.140×54=7560
270 UNITS GOODS CONSIDERED FROM 5-OCT PURCHASED I.E.270×59=15930
120 UNITS GOODS CONSIDERED FROM 18-OCT PURCHASED I.E.120×64=7680
160 UNITS GOODS CONSIDERED FROM 25-OCT PURCHASED I.E.160×66=10560
TOTAL OF GOODS SOLD=41730
GROSS PROFIT=64210-41730=22480
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