Question

Lander Company reported the following January purchases and sales data for its only product.

Date		Activities	Units Acquired at Cost								Units sold
Jan.	1	Beginning inventory	240	units	@	$	16.50
Jan.	10	Sales										190	units
Jan.	20	Purchase	170	units	@	$	15.50
Jan.	25	Sales										190	units
Jan.	30	Purchase	380	units	@	$	15.00

REQUIRED:

1. Determine the cost assigned to ending inventory and to cost of goods sold using (a) weighted average, (b) FIFO, and (c) LIFO.

2. If the company’s sales price per unit is $25.50, how much is the company’s profit using (a) weighted average, (b) FIFO, and (c) LIFO.

Answer 1