4. You extracted the following info from WAN Co. regarding its inventory transactions for last three...

4. You extracted the following info from WAN Co. regarding its inventory transactions for last three months. The Co. uses perpetual inventory system. Date Transactions # of Units Per Unit Total Oct 1 Inventory 2,500 $60.00 $150,000 Oct 10 Purchase 7,500 $68.00 $510,000 Oct 28 Sale 3,750 $120.00 $450,000 Oct 30 Sale 1,250 $120.00 $150,000 Nov 5 Sale 500 $120.00 $60,000 Nov10 Purchase 18,000 $70.00 $1,260,000 Nov16 Sale 9,000 $125.00 $1,125,000 Nov28 Sale 8,500 $125.00 $1,062,500 Dec 5 Purchase 15,000 $71.60 $1,074,000 Dec 14 Sale 10,000 $125.00 $1,250,000 Dec 25 Purchase 2,500 $72.00 $180,000 Dec 30 Sale 8,750 $125.00 $1,093,750 a. Record the inventory, purchases, and COGS data – using LIFO method. Follow Exhibit 5 in the book. 10 points b. Determine the total sales, total COGS, and gross profit for the period. 10 points c. Determine the ending inventory s of December 31.

Expert Solution

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Oct							2500	60	150000
10-Oct	7500	68	510000				2500	60	150000
							7500	68	510000
28-Oct				3750	68	255000	2500	60	150000
							3750	68	255000
30-Oct				1250	68	85000	2500	60	150000
							2500	68	170000
5-Nov				500	68	34000	2500	60	150000
							2000	68	136000
10-Nov	18000	70	1260000				2500	60	150000
							2000	68	136000
							18000	70	1260000
16-Nov				9000	70	630000	2500	60	150000
							2000	68	136000
							9000	70	630000
28-Nov				8500	70	595000	2500	60	150000
							2000	68	136000
							500	70	35000
5-Dec	15000	71.6	1074000				2500	60	150000
							2000	68	136000
							500	70	35000
							15000	71.6	1074000
14-Dec				10000	71.6	716000	2500	60	150000
							2000	68	136000
							500	70	35000
							5000	71.6	358000
25-Dec	2500	72	180000				2500	60	150000
							2000	68	136000
							500	70	35000
							5000	71.6	358000
							2500	72	180000
30-Dec				2500	72	180000
				5000	71.6	358000
				500	70	35000	2500	60	150000
				750	68	51000	1250	68	85000
TOTAL	43000		3024000	41750		2939000	3750		235000

Total sales:
28-Oct		450000
30-Oct		150000
5-Nov		60000
16-Nov		1125000
28-Nov		1062500
14-Dec		1250000
30-Dec		1093750
Ttotal sales		5191250

COGS: $2939,000
Gross profit: Ssales -COGS = $ 5191,250 -2939,000 = $2252,250
Ending Inventory: $235,000

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