Question

During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 60 $ 52 $ 3,120 Apr. 7 Purchase 140 54 7,560 Jul. 16 Purchase 210 57 11,970 Oct. 6 Purchase 120 58 6,960 530 $ 29,610 For the entire year, the company sells 450 units of inventory for $70 each.  

1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

2. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan	60	52	3120	60	52	3120
Purchasse
7-Apr	140	54	7560	140	54	7560
16-Jul	210	57	11970	210	57	11970
6-Oct	120	58	6960	40	58	2320	80	58	4640
TOTAL	530		29610	450		24970	80		4640
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan	60	52	3120				60	52	3120
Purchasse
7-Apr	140	54	7560	120	54	6480	20	54	1080
16-Jul	210	57	11970	210	57	11970
6-Oct	120	58	6960	120	58	6960
TOTAL	530		29610	450		25410	80		4200
				FIFO	LIFO
Ending inventory				4640	4200
Cost of goods sold				24970	25410
Sales revenue (450*70)				31500	31500
Gross Profit (Sales-COGS)				6530	6090