Question

Ruxton Company had 600 units in inventory at the beginning of November, each assigned a $10 unit cost.

Ruxton also made the following purchases of inventory and sales of inventory during November.

Purchases during November                                             Sales in November              

Nov.    6          175 units at $11              November        4          375 units sold for $20

            14       250 units at $12                                    8          200 units sold for $20

            16        500 units at $13                                    17        400 units sold for $20

            28        325units at $14                                     24        320 units sold for $20

                                                           

Alternate presentation of above information

		PURCHASES			SALES
DATE	Activity	Number Units	Unit Cost	Total Purchases	Number Units	Unit Sales Price	Total Sales
11-1	Beginning Inventory	600	$10		---		---
11-4	SALE	---		---	375	$20
11-6	Purchase	175	$11		---		---
11-8	SALE	---		---	200	$20
11-14	Purchase	250	$12		---		---
11-16	Purchase	500	$13		---		---
11-17	SALE	---		---	400	$20
11-24	SALE	---		---	320	$20
11-28	Purchase	325	$14		---		---

Instructions

Compute the April 30 ending inventory and April cost of goods sold as well as the amount of reported gross profit under the different cost flow assumptions and inventory tracking systems.

Provide appropriate supporting calculations, SHOWN on provided supporting work paper, clearly labeled and legible.

METHOD:	ENDING INVENTORY*	COST OF GOODS SOLD*	GROSS PROFIT**
(a) Average cost, periodic
(b) Average cost, perpetual
(c) FIFO, periodic
(d) FIFO, perpetual
(e) LIFO, periodic
(f) LIFO, perpetual

* Make sure that: Ending inventory + Cost of goods sold = Total cost of goods available for sale

**This column is GROSS PROFIT that would be reported based on the cost of goods sold determined for each costing scenario and total sales determined from information given above.

Answer 1