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rk Help Sav Mar. 1 Beginning Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar.

ID: 2567545 • Letter: R

Question

rk Help Sav Mar. 1 Beginning Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales inventory 230 unitse $53.60 per 290 units $58.60 per unit 390 unitg8 $88.60 per 150 units S63.60 per 280 units s65.60 per unit unit 260 units 8 $98.60 per 650 units unit Totals 950 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 130 units from beginning inventory and 260 units from the March 5 purchase, the March 29 sale consisted of 110 unts from the March 18 purchase and 150 units from the March 25 purchase. (Round weighted average cost final answers to nearest whole dollar.) decimals and Spec. ID LIFO Avg. Cost FIFO Gross Margin Sales Less Cost of goods sold Next >

Explanation / Answer

FIFO

230 units * $53.60 = $12328

290 units * $58.60 = $16994

230 units * $53.60 = $12328

160 units * $58.60 = $9376

130 units * $58.60 = $7618

150 units * $63.60 = $9540

130 units * $58.60 = $7618

150 units * $63.60 = $9540

280 units * $65.60 = $18368

130 units * $58.60 = $7618

130 units * $63.60 = $8268

20 units * $63.60 = $1272

280 units * $65.60 = $18368

LIFO

230 units * $53.60 = $12328

290 units * $58.60 = $16994

290 units * $58.60 = $16994

100 units * $53.60 = $5360

130 units * $53.60 = $6968

150 units * $63.60 = $9540

130 units * $53.60 = $6968

150 units * $63.60 = $9540

280 units * $65.60 = $18368

130 units * $53.60 = $6968

150 units * $63.60 = $9540

20 units * $65.60 = $1312

Average cost method

130 units * $56.388 = $7330

150 units * $63.60 = $9540

Specific identification:

Cost of goods sold :

130 units * $53.60 = $6968

260 units * $58.60 = $15236

110 units * $63.60 = $6996

150 units * $65.60 = $9840

Cost of goods sold $39040

  

FIFO LIFO AVERAGE COST SPECIFIC IDENTIFICATION

Sales $60190 $60190 $60190 $60190

Cost of goods sold $37590 $39410 $38351 $39040

Gross margin $22600 $20780 $21839 $21150.

Date Cost of goods available for sale Cost of goods sold Ending inventory Mar 1 230 units * $53.60 = $12328 230 units * $53.60 = $12328 5 290 units * $58.60 = $16994

230 units * $53.60 = $12328

290 units * $58.60 = $16994

9

230 units * $53.60 = $12328

160 units * $58.60 = $9376

130 units * $58.60 = $7618 18 150 units * $63.60 = $9540

130 units * $58.60 = $7618

150 units * $63.60 = $9540

25 280 * $65.60 = $18368

130 units * $58.60 = $7618

150 units * $63.60 = $9540

280 units * $65.60 = $18368

29

130 units * $58.60 = $7618

130 units * $63.60 = $8268

20 units * $63.60 = $1272

280 units * $65.60 = $18368

Cost of goods sold $37590 Ending inventory $19640