Inventory information for Part 311 of Crane Corp. discloses the following inform

Question

Inventory information for Part 311 of Crane Corp. discloses the following information for the month of June. June 1 Balance 298 units @ $10 June 10 Sold 199 units @ $24 11 Purchased 797 units @ $12 15 Sold 497 units @ $26 20 Purchased 505 units @ $13 27 Sold 295 units @ $28. A) Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO. B) 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? C) 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?

Explanation / Answer

Calculations:

A) Periodic Inventory: Cost of goods sold $ Ending inventory $ (1) LIFO $                        12,397 $                        6,712 (2) FIFO $                        11,296 $                        7,813 Perpetual Inventory: Cost of goods sold Ending inventory B) LIFO $                        11,789 $                        7,320 C) FIFO $                        11,296 $                        7,813

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