Inventory information for Part 311 of Larkspur Corp. discloses the following inf
ID: 2569169 • Letter: I
Question
Inventory information for Part 311 of Larkspur Corp. discloses the following information for the month of June.
June 1 Balance 297 units @ $14 June 10 Sold 204 units @ $35
11 Purchased 803 units @ $17 15 Sold 497 units @ $36
20 Purchased 505 units @ $19 27 Sold 296 units @ $39
Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.
(1) LIFO (2) FIFO
Cost of Goods Sold $__________ $ __________
Ending Inventory $__________ $___________
Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?
The ending inventory at LIFO $___________
Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO?
Gross Profit (FIFO) $____________
Explanation / Answer
The ending inventory at LIFO $ 10,475
Gross Profit (FIFO) $20,518
Gross Profit = Sales - Cost of goods sold
Gross Profit = 36576-16058 = 20518
(1) LIFO (2) FIFO Cost of Goods Sold $16,929 $16,058Related Questions
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