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Date Description Units Unit Costs/selling Price

Using LIFO, FIFO, and average cost methods, calculate the ending inventory, cost of goods sold, gross profit, and gross profit rate based on the beginning inventory, purchases, and sales information provided for March and for Alpha Inc. in October 2015. The calculations will determine the financial results using different inventory costing methods.

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jaberalislam
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45 views1 page

Date Description Units Unit Costs/selling Price

Using LIFO, FIFO, and average cost methods, calculate the ending inventory, cost of goods sold, gross profit, and gross profit rate based on the beginning inventory, purchases, and sales information provided for March and for Alpha Inc. in October 2015. The calculations will determine the financial results using different inventory costing methods.

Uploaded by

jaberalislam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Use LIFO, FIFO on the following information to calculate the value of ending inventory
and the cost of goods sold of March.

Mar 1 Beginning Inventory 60 units @ $15.00


5 Purchase 140 units @ $15.50
14 Sale 190 units @ $19.00
27 Purchase 70 units @ $16.00
29 Sale 30 units @ $19.50

2. You are provided with the following information for Alpha Inc. for the month ended
October 31, 2015. Alpha uses a periodic method for inventory.

Date Description Units Unit costs/Selling


Price
October 1 Beginning inventory 60 Tk.25
October 9 Purchase 120 26
October 11 Sale 100 35
October 17 Purchase 70 27
October 22 Sale 60 40
October 25 Purchase 80 28
October 29 Sale 110 40

Total Sale Revenue: Tk. 10,300 and Cost of goods available for sale: Tk. 8750

Instructions
(a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit
rate under each of the following methods.
LIFO.
FIFO.
Average-cost.

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