Inventory information for Part 311 of Sarasota Corp. discloses the following inf
ID: 2585838 • Letter: I
Question
Inventory information for Part 311 of Sarasota Corp. discloses the following information for the month of June.
296 units @ $35
Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.
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?
296 units @ $35
Explanation / Answer
LIFO - Cost of goods sold
Date
Qty
Rate
Amount
June. 1
$13
$0
June. 11
494
$15
$7,410
June. 20
501
$17
$8,517
Total
995
$15,927
LIFO - Ending Inventory
Date
Qty
Rate
Amount
June. 1
296
$13
$3,848
June. 11
307
$15
$4,605
June. 20
$17
$0
Total
603
$8,453
FIFO - Cost of goods sold
Date
Qty
Rate
Amount
June. 1
296
$13
$3,848
June. 11
699
$15
$10,485
June. 20
$17
$0
Total
995
$14,333
FIFO - Ending Inventory
Date
Qty
Rate
Amount
June. 1
$13
$0
June. 11
102
$15
$1,530
June. 20
501
$17
$8,517
Total
603
$10,047
Date
Purchase
Sales
Ending Inventory
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
June. 1
296
$13
$3,848
June. 10
204
$13
$2,652
92
$13
$1,196
June. 11
801
$15
$12,015
92
$13
$1,196
801
$15
$12,015
June. 15
495
$15
$7,425
92
$13
$1,196
306
$15
$4,590
June. 20
501
$17
$8,517
92
$13
$1,196
306
$15
$4,590
501
$17
$8,517
June. 27
296
$17
$5,032
92
$13
$1,196
306
$15
$4,590
205
$17
$3,485
995
$15,109
603
$9,271
Date
Qty
Rate
Amount
June. 10
204
$31
$6,324
June. 15
495
$32
$15,840
June. 27
296
$35
$10,360
Sales
995
$32,524
Less: Cost of goods sold
$15,109
Gross Profit
$17,415
LIFO - Cost of goods sold
Date
Qty
Rate
Amount
June. 1
$13
$0
June. 11
494
$15
$7,410
June. 20
501
$17
$8,517
Total
995
$15,927
LIFO - Ending Inventory
Date
Qty
Rate
Amount
June. 1
296
$13
$3,848
June. 11
307
$15
$4,605
June. 20
$17
$0
Total
603
$8,453
FIFO - Cost of goods sold
Date
Qty
Rate
Amount
June. 1
296
$13
$3,848
June. 11
699
$15
$10,485
June. 20
$17
$0
Total
995
$14,333
FIFO - Ending Inventory
Date
Qty
Rate
Amount
June. 1
$13
$0
June. 11
102
$15
$1,530
June. 20
501
$17
$8,517
Total
603
$10,047
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