E6A-26 Comparing ending merchandise inventory, cost of goods sold, and gross pro
ID: 2544235 • Letter: E
Question
E6A-26 Comparing ending merchandise inventory, cost of goods sold, and gross profit using the periodic inventory system-FIFO, LIFO, and weighted-average methods Learning Objective 7 Appendix 6A 2. COGS $513 Assume that Jump Coffee Shop completed the following periodic inventory transactions for a line of merchandise inventory: Jun. 1 Beginning merchandise inventory 17 units 15 each 5 units $ 19 each 14 units @ $37 each 11 units @ $ 23 each 13 units @ $ 37 each 12 Purchase 20 Sale 24 Purchase 29 Sale Requirements 1. Compute ending merchandise inventory, cost of goods sold, and gross profit using the FIFO inventory costing method. 2. Compute ending merchandise inventory, cost of goods sold, and gross profit using the LIFO inventory costing method. 3. Compute ending merchandise inventory, cost of goods sold, and gross profit using the weighted-average inventory costing method. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.)Explanation / Answer
1) Calculate following under FIFO :
2) Calculate following under LIFO :
3) Calculate following under Weighted average
Cost of goods available for sale (17*15+5*19+11*23) 603 Ending inventory (6*23) 138 Cost of goods sold (603-138) 465 Sales (27*37) 999 Gross profit 534Related Questions
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