Question

nventory information for Part 311 of Wildhorse Corp. discloses the following information for the month of June. June 1 Balance 295 units @ $12 June 10 Sold 196 units @ $30 11 Purchased 799 units @ $15 15 Sold 505 units @ $31 20 Purchased 498 units @ $16 27 Sold 296 units @ $33

Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO. (1) LIFO (2) FIFO Cost of Goods Sold $ $ Ending Inventory $ $ LINK TO TEXT

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO? The ending inventory at LIFO $ LINK TO TEXT

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO? Gross Profit (FIFO) $

Answer 1

Answer a.

LIFO:

Cost of Goods Sold = $15,453
Ending Inventory = $8,040

FIFO:

Cost of Goods Sold = $14,070
Ending Inventory = $9,423

Answer b.

Ending Inventory = $14,663

Answer c.

Sales = 196 * $30.00 + 505 * $31.00 + 296 * $33.00
Sales = $31,303

Cost of Goods Sold = $14,070

Gross Profit = Sales - Cost of Goods Sold
Gross Profit = $31,303 - $14,070
Gross Profit = $17,233