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In: Accounting

Dole Industries had the following inventory transactions occur during 2012: Feb. 1, 2012 Purchase 54 $90...

Dole Industries had the following inventory transactions occur during 2012:

Feb. 1, 2012 Purchase 54 $90 = $4,860

Mar. 14, 2012 Purchase 93 $94 = $8,742

May 1, 2012 Purchase 66 $98 = $6,468

The company sold 153 units at $126 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s gross profit using LIFO?

Solutions

Expert Solution

Answer----------Gross profit = $4,632

Working

LIFO
Sales revenue $           19,278.00
Cost of goods sold $           14,646.00
Gross profit $             4,632.00

.

LIFO
Total Units Available for sale 213
Units Sold 153
Closing Stock in Units 60
Valuation
Ending Inventory 54 @ $             90.00 $ 4,860
6 @ $             94.00 $ 564
Value Of Ending Inventory $              5,424
Cost of Goods sold 20070 minus 5424 $            14,646

ekkarill92 answered 1 year ago
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