Question

Stocks, Inc., sells weight-lifting equipment. The sales and inventory records of the company for January through March 2017 were as follows:

	Weight Sets	Unit Cost	Total Cost
Beginning inventory, January 1	460	$30	$13,800
Purchase, January 16	110	32	3,520
Sale, January 25 ($45 per set)	216	45	9,720
Purchase, February 16	105	36	3,780
Sale, February 27 ($40 per set)	307	40	12,280
Purchase, March 10	150	28	4,200
Sale, March 30 ($50 per set)	190	50	9,500

Determine the amounts for ending inventory, cost of goods sold, and gross profit under the FIFO, LIFO and Average Cost costing alternatives. Use the periodic inventory method, which means that all sales are assumed to happen at the end of the period no matter when they actually occurred. Round amounts to the nearest dollar.

Calculate Cost of Goods Available for Sale:

Date	Units	Price		Total
Beginning inventory	460	$30	Beginning Inventory	13,800
January 16	110	$32	+ purchases	3,520
February 16	105	$36	+ purchases	3,780
March 10	150	$28	+ purchases	4,200
TOTAL	825	126	= Goods available for sale	25,300

FIFO:

Calculate FIFO Ending Inventory:

How many sets were sold?                          

Ending inventory would be the newest 112 sets:

Date	Price	Total
ENDING INVENTORY:

Calculate FIFO Cost of Goods Sold:

This would be the oldest sets from inventory:

Date	Price	Total
	$30
	$32
	$36
	$28
FIFO COGS:

Calculate FIFO Gross Profit:

Calculate total sales:

Sales:
TOTAL SALES

Gross Profit:

Sales:
-COGS
Gross Profit

Answer 1

Ans.	Total sets was sold are 713 (i.e. 216+307+190).
Ans.	Ending inventory cost for the newest 112 sets:
	Date		Weight Sets	Price	Total
	Purchase, March 10		112	28	3,136
	Ending Inventory				3136
Ans.	Calculation Cost of goods sold (FIFO):
	Date		Weight Sets	Price	Total
	January, 1		460	30	13,800
	January, 16		110	32	3,520
	February, 16		105	36	3,780
	March, 10		38	28	1,064
	FIFO COGS		713		22,164
Ans.	Calculation of total sales:
	Date		Weight Sets	Price	Total
	January, 25		216	45	9,720
	February, 27		316	40	12,640
	March, 30		190	50	9,500
	Total sales		722		31,860
Ans.	Calculation of Gross Profit:
	Sales			31,860
	Less: COGS			22,164
	Gross Profit			9,696