Question

Consider the following transactions for Tradex Company. Purchase: January 10 units to €25 each February 15...

Consider the following transactions for Tradex Company.

Purchase:

January 10 units to €25 each

February 15 units to €30 each

April 20 units at €35 each

Sales:

March 15 units to €50 each

May 18 units at €60 each

Calculate the cost of sales and gross profit based on inventory cost method FIFO.

Calculate the cost of sales and gross profit based on the LIFO inventory cost method.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
FIFO:
Purchases
Units Rate Total
Jan 10 25 250
Feb 15 30 450
April 15 35 525
Cost of good sold
Units Rate Total
March 10 25 250
5 30 150
May 10 30 300
8 35 280
Total COGS 980
Sales
March 15 50 750
May 18 60 1080
1830
Cost of good sold 980
Gross profit Sales - Cost of good sold
1830 - 980
850
LIFO:
Cost of good sold Units Rate Total
March 15 30 450
May 18 35 630
Total 1080
Sales as calculated in part above 1830
Cost of good sold 1080
Gross profit Sales - Cost of good sold
1830-1080
750
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following transactions occurred for the month of May. Date    Units Cost Total Sales Price...
The following transactions occurred for the month of May. Date    Units Cost Total Sales Price 1-May Beginning Balance 70 15 $1,050 2-May Purchase 75 11 $825 3-May Purchase 85 12 $1,020 10-May Sale 150 $35 15-May Purchase 40 18 $720 17-May Sale 50 $35 30-May Sale 40 $35 Create a perpetual inventory record then calculate the Cost of Goods Sold, Ending inventory, and Gross Profit for the month under FIFO Purchases Cost of Goods Sold Inventory on Hand Dates...
Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the...
Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system. Date Transactions Units Unit Cost Total Cost March 1 Beginning inventory 20 $ 205 $ 4,100 March 5 Sale ($310 each) 15 March 9 Purchase 10 225 2,250 March 17 Sale ($360 each) 8 March 22 Purchase 10 235 2,350 March 27 Sale ($385 each) 12 March 30 Purchase 9 255 2,295 $...
A company made the following purchases during the year: Jan. 10 15 units at $360 each...
A company made the following purchases during the year: Jan. 10 15 units at $360 each Mar. 15 25 units at $390 each Apr. 25 10 units at $420 each July 30 20 units at $450 each Oct. 10 15 units at $480 each On December 31, there were 28 units in ending inventory. These 28 units consisted of 1 from the January 10 purchase, 2 from the March 15 purchase, 5 from the April 25 purchase, 15 from the...
The Devlin Corporation, a diversified distribution company, purchases cartons of canned tennis balls from the Questor...
The Devlin Corporation, a diversified distribution company, purchases cartons of canned tennis balls from the Questor Company and markets the balls under the Devlin brand name. Devlin started operations on January 1, 2016. In the table below, Quarter 1 represents the time period from January 1, 2016 to March 31, 2016 and Quarter 2 represents the time period from April 1, 2016 to June 30, 2016. Devlin began operations on January 1, 2016 with no inventory. Purchases and sales data...
25. JB Adams Inc. had the following purchase transactions in May Date of Purchase Number of...
25. JB Adams Inc. had the following purchase transactions in May Date of Purchase Number of Units Cost per Unit Total Cost May 5 500 $4 $2,000 May 10 700 $6 $4,200 May 15 400 $4.50 1,800 Adams sells 1,000 units on May 20 and uses the FIFO method of inventory costing. What is Adams' ending Inventory? Group of answer choices a 600 b 1,800 c 5,000 d 3,000 26. JB Adams Inc. had the following purchase transactions in May...
Q3- A company that uses a perpetual inventory system made the following cash purchases and sales....
Q3- A company that uses a perpetual inventory system made the following cash purchases and sales. There was no beginning inventory. January 1: Purchased 30 units at SAR11 per unit February 5: Purchased 30 units at SAR 13 per unit March 16: Sold 50 Units for SAR 15 per unit A. Prepare general journal entries to record the March 16 sale using the: 1. FIFO inventory valuation method. 2. LIFO inventory valuation method. 3. Weighted average valuation method. B. What...
The records of ABC Company showed the following: Units Unit cost Total cost January 1 Beginning...
The records of ABC Company showed the following: Units Unit cost Total cost January 1 Beginning 10,000 60 600,000 April 1 Purchase 18,000 50   900,000 October 1 Purchase 22,000 40    880,000 The physical inventory reveals 15,000 units on hand on December 31. Compute the cost of ending inventory and cost of sales using: 1. First in, first out (FIFO) ] 2. Weighted average 3. Last in, first out (LIFO)
1a Albert Trading uses the perpetual inventory system. It recorded the following transactions for June. 1...
1a Albert Trading uses the perpetual inventory system. It recorded the following transactions for June. 1 Jun Beginning inventory of 20 units at $80 each 3 Jun Purchased 10 units at $85 each 5 Jun Sold 22 units at $120 each 10 Jun Purchased 15 units at $90 each 17 Jun Sold 10 units at $125 each 25 Jun Sold 5 units at $130 each Compute the gross profit and ending inventory cost under FIFO method and under weighted average...
Cost Flow Methods The following three identical units of Item JC07 are purchased during April: Item...
Cost Flow Methods The following three identical units of Item JC07 are purchased during April: Item Beta Units Cost April 2 Purchase 1 $104 April 15 Purchase 1 105 April 20 Purchase 1 106 Total 3 $315 Average cost per unit $105 ($315 ÷ 3 units) Assume that one unit is sold on April 27 for $147. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and...
Consider the following information for Maynor Company, which uses a perpetual inventory system:    Transaction Units...
Consider the following information for Maynor Company, which uses a perpetual inventory system:    Transaction Units Unit Cost Total Cost January 1 Beginning Inventory 20 $ 70 $ 1,400 March 28 Purchase 30 76 2,280 August 22 Purchase 40 80 3,200 October 14 Purchase 45 86 3,870 Goods Available for Sale 135 $ 10,750 The company sold 45 units on May 1 and 40 units on October 28. Required: Calculate the company's ending inventory and cost of goods sold using...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT