Question

I posted a question yesteraday and got an answer. There is a second part to the question

Problem 6-4A^A Periodic: Alternative cost flows P3

Refer to the information in Problem 6-3A and assume the periodic inventory system is used.

Required

Compute cost of goods available for sale and the number of units available for sale.

Compute the number of units in ending inventory.

Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.)

Compute gross profit earned by the company for each of the four costing methods in part 3.

Analysis Component

If the company’s manager earns a bonus based on a percentage of gross profit, which method of inventory costing will the manager likely prefer?

	Number of units	Cost per unit	Total cost
opening	600	45	27000
purchase	400	42	16800
purchase	200	27	5400
purchase	100	50	5000
purchase	500	46	23000
Total	1800		77200
Units for sale	1800
sales (minus)	800
sales (minus)	600
Ending inventory	400
FIFO	18,400
LIFO	18,000
WA	17,760
SI	18,200
	FIFO	LIFO	WA	SI
sales	105,000	105,000	105,000	105,000
cost of goods sold	58,800	59,200	59,440	59,000
gross profit	46,200	45,800	45,560	46,000

Answer 1