Dutch Truck Sales sells semitrailers. The current inventory includes the following five semitrailers (identical except for paint color) along with purchase dates and costs: Semitrailer Purchase Date Cost 1 April 3, 2008 $73,000 2 April 10, 2008 70,000 3 April 10, 2008 71,000 4 May 4, 2008 77,000 5 (л May 12, 2008 78,500 On May 20, 2008, a trucking firm purchased semitrailer 3 from Dutch for $86,000. 1. Compute the gross margin on this sale assuming Dutch uses: (a) FIFO inventory method. (b) LIFO inventory method. (c) Specific identification method. 2. Which inventory method do you think Dutch should use? Why?

During the year, Wright Company sells 435 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory   40   $ 80   $ 3,200     May. 5 Purchase   240     83     19,920     Nov. 3 Purchase   180     88     15,840           460         $ 38,960 Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO.     LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory   # of units Cost per unit Cost of Goods Available for Sale # of units Cost per unit Cost of Goods Sold # of units Cost per unit Ending Inventory Beginning Inventory not attempted not attempted $0 not attempted $0 $0 not attempted     Purchases:           May 5 not attempted not attempted 0 not attempted $0 0 not attempted     Nov. 3 not attempted not attempted 0 not attempted $0 0 not attempted     Total 0…

Vishal

On January 15, 2018, Walmart sold 1,700 fishing reels to Costco. Immediately prior to this sale, Walmart perpetual inventory records for reels included the following cost layers:   Prepare a separate journal entry to record the cost of goods sold relating to the January 15 sale of 1,700 reels, assuming that Walmart uses: LIFO