Dublin Corporation provides the following information related to its inventory during the month of October: October 1 Inventory on hand—3,000 units; cost $6.00 each. October 9 Sold 2,400 units for $10.00 each. October 12 Purchased 1,200 units for $6.30 each. October 18 Sold 1,000 units for $10.20 each. October 24 Purchased 1,400 units for $7.20 each. October 31 Inventory on hand Required: Using calculations based on a PERPETUAL inventory system, determine the inventory balance Dublin would report in its October 31 balance sheet and the cost of goods sold it would report in its October income statement using each of the following cost flow methods. Determine the cost assigned to ending inventory and to cost of goods sold using the FIFO method. Determine the cost assigned to ending inventory and to cost of goods sold using the LIFO method. Compute the amount of gross profit under the two methods.
Dublin Corporation provides the following information related to its inventory during the month of October: October 1 Inventory on hand—3,000 units; cost $6.00 each. October 9 Sold 2,400 units for $10.00 each. October 12 Purchased 1,200 units for $6.30 each. October 18 Sold 1,000 units for $10.20 each. October 24 Purchased 1,400 units for $7.20 each. October 31 Inventory on hand Required: Using calculations based on a PERPETUAL inventory system, determine the inventory balance Dublin would report in its October 31 balance sheet and the cost of goods sold it would report in its October income statement using each of the following cost flow methods. Determine the cost assigned to ending inventory and to cost of goods sold using the FIFO method. Determine the cost assigned to ending inventory and to cost of goods sold using the LIFO method. Compute the amount of gross profit under the two methods.
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