Question

You have the following information for Bramble Corp. for the month ended October 31, 2022. Bramble uses a periodic method for inventory. Date Description Units Unit Cost or Selling Price Oct. 1 Beginning inventory 65 $26 Oct. 9 Purchase 115 28 Oct. 11 Sale 95 40 Oct. 17 Purchase 95 29 Oct. 22 Sale 65 45 Oct. 25 Purchase 75 31 Oct. 29 Sale 105 45 Calculate the weighted-average cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average cost per unit $enter weighted-average cost per unit in dollars SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 0 decimal place, e.g. 125.) LIFO FIFO AVERAGE-COST The ending inventory $enter a dollar amount $enter a dollar amount $enter a dollar amount The cost of goods sold $enter a dollar amount $enter a dollar amount $enter a dollar amount Gross profit $enter a dollar amount $enter a dollar amount $enter a dollar amount SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 1 decimal place, e.g. 51.2%) LIFO FIFO AVERAGE-COST Gross profit rate enter a gross profit rate in percentages rounded to 1 decimal place % enter a gross profit rate in percentages rounded to 1 decimal place % enter a gross profit rate in percentages rounded to 1 decimal place %

Answer 1

Ans.	Date		Units	Rate	Total
	1-Oct		65	$26.00	$1,690
	9-Oct		115	$28.00	$3,220
	17-Oct		95	$29.00	$2,755
	25-Oct		75	$31.00	$2,325
	Cost of goods available for sale		350		$9,990
	Weighted average cost per unit =   Total cost of goods available for sale / Total units available
		$9,990 / 350
		$28.543	per unit
	Units sold (95 + 65 + 105) =   265 units
	Ending inventory units = Total units available - Units sold
		350 - 265 = 35 units
Periodic LIFO:
	Date	Units	Rate	Total
	25-Oct	75	$31.00	$2,325
	17-Oct	95	$29.00	$2,755
	9-Oct	115	$28.00	$3,220
	Cost of goods sold	285		$8,300
	Ending inventory = Total cost of goods available for sale - Cost of goods sold
		$9,990 - $8,300
		$1,690
	*In LIFO method the units that have purchased last, are released the first one and ending inventory units
	remain from the first purchase.
Periodic FIFO:
	Date	Units	Rate	Total
	1-Oct	65	$26.00	$1,690
	9-Oct	115	$28.00	$3,220
	17-Oct	85	$29.00	$2,465
	Cost of goods sold	265		$7,375
	Ending inventory = Total cost of goods available for sale - Cost of goods sold
		$9,990 - $7,375
		$2,615
	*In FIFO method the units that have purchased first, are released the first one and the ending inventory
	units remain from the last purchases.
Weighted average Periodic:
	Cost of goods sold =   Units sold * Average cost per unit
		265 * $28.543
		$7,564
	Ending inventory = Total cost of goods available for sale - Cost of goods sold
		$9,990 - $7,564
		$2,426
Ans.			LIFO	FIFO	Weighted average
	Sales   (a)		$11,450	$11,450	$11,450
	(-) Cost of goods sold (b)		-$8,300	-$7,375	-$7,564
	Gross margin ©		$3,150	$4,075	$3,886
	Gross profit percentage (c/a*100)		27.5%	35.6%	33.9%
	*Calculation of sales:
	Date	Units	Rate	Cost
	11-Oct	95	$40.00	$3,800
	22-Oct	65	$45.00	$2,925
	29-Oct	105	$45.00	$4,725
	Total sales	265		$11,450
	*Gross profit percentage   =   Gross profit / Sales * 100