Question

Salt Co. and Pepper Co. are in the same business and sell the same merchandise but have different inventory systems: Salt’s is perpetual and Pepper’s is periodic. Both companies sell their products at a price of $10 each, and their inventory activity for March of 2020 is presented below.

Salt

Date	Description	# of Units	Unit Price	Total Cost
02/29/20	Beginning Inventory	50	$1	$50
03/08/20	Purchase 1	50	$2	$100
03/15/20	Sale	90
03/22/20	Purchase 2	50	$3	$150
03/27/20	Purchase 3	50	$4	$200
03/31/20	Ending Inventory	110

Pepper

Date	Description	# of Units	Unit Price	Total Cost
02/29/20	Beginning Inventory	50	$1	$50
03/08/20	Purchase 1	50	$2	$100
03/22/20	Purchase 2	50	$3	$150
03/27/20	Purchase 3	50	$4	$200
03/31/20	Ending Inventory	110

Required—Calculate each of the following under the assumption indicated:

1. Salt’s ending inventory at 03/31/20 assuming it uses FIFO.

2. Salt’s October cost of goods sold assuming it uses FIFO.

3. Salt’s October gross profit assuming it uses FIFO.

4. Salt’s ending inventory at 03/31/20 assuming it uses LIFO.

5. Salt’s October cost of goods sold assuming it uses LIFO.

6. Salt’s October gross profit assuming it uses LIFO.

7. Pepper’s ending inventory at 03/31/20 assuming it uses FIFO.

8. Pepper’s October cost of goods sold assuming it uses FIFO.

9. Pepper’s October gross profit assuming it uses FIFO.

10. Pepper’s ending inventory at 03/31/20 assuming it uses LIFO.

11. Pepper’s October cost of goods sold assuming it uses LIFO.

12. Pepper’s October gross profit assuming it uses LIFO.

Answer 1