. A record of transactions for the month of September was as follows: Purchases Sales May 1 400 @ $4.20 May 3 300 @ $7.00 4 1,300 @ $4.10 6 1,000 @ 7.00 8 800 @ $4.30 12 900 @ 7.50 14 700 @ $4.40 18 400 @ 7.50 22 1,200 @ $4.50 25 1,400 @ 8.00 Instructions 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 and at FIFO? Calculate Gross Profit under both LIFO & FIFO.
. A record of transactions for the month of September was as follows: Purchases Sales May 1 400 @ $4.20 May 3 300 @ $7.00 4 1,300 @ $4.10 6 1,000 @ 7.00 8 800 @ $4.30 12 900 @ 7.50 14 700 @ $4.40 18 400 @ 7.50 22 1,200 @ $4.50 25 1,400 @ 8.00 Instructions 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 and at FIFO? Calculate Gross Profit under both LIFO & FIFO.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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1. A record of transactions for the month of September was as follows:
|
Purchases |
|
Sales |
|
|
May 1 |
400 @ $4.20 |
May 3 |
300 @ $7.00 |
|
4 |
1,300 @ $4.10 |
6 |
1,000 @ 7.00 |
|
8 |
800 @ $4.30 |
12 |
900 @ 7.50 |
|
14 |
700 @ $4.40 |
18 |
400 @ 7.50 |
|
22 |
1,200 @ $4.50 |
25 |
1,400 @ 8.00 |
Instructions
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 and at FIFO? Calculate Gross Profit under both LIFO & FIFO.
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