Question

You are provided with the following information for Sheffield Inc. for the month ended June 30, 2020. Sheffield uses the periodic method for inventory.

Date				Description		Quantity		Unit Cost or Selling Price
June		1		Beginning inventory		39		$39
June		4		Purchase		136		42
June		10		Sale		108		72
June		11		Sale return		13		72
June		18		Purchase		52		44
June		18		Purchase return		8		44
June		25		Sale		62		77
June		28		Purchase		26		49

Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round average-cost method answers to 2 decimal places, e.g. 1,250.25 and other answers to 0 decimal places, e.g. 1,250.)

		LIFO		FIFO		AVERAGE-COST
The ending inventory		$Enter a dollar amount		$Enter a dollar amount		$Enter a dollar amount
The cost of goods sold		$Enter a dollar amount		$Enter a dollar amount		$Enter a dollar amount
Gross profit		$Enter a dollar amount		$Enter a dollar amount		$Enter a dollar amount

Answer 1

Total Purchases

	Date	Description	Quantity	Unit Cost or Selling Price	Total cost
June	1	Beginning inventory	39	$39	1521
June	4	Purchase	136	42	5712
June	18	Purchase	44	44	1936
June	28	Purchase	26	49	1274
			245		10443

Total Sales

	Date	Description	Quantity	Unit Cost or Selling Price	Total cost
June	10	Sale	95	72	6840
June	25	Sale	62	77	4774
			157		11709

Ending inventory = 245 - 157 = 88 units

	FIFO	LIFO	Average cost
Ending inventory	3966 1274 + 1936 + (18*42)	3579 1521 + (49*42)	3751 (10443 / 245) * 88
Cost of goods sold	6477 1521 + (118*42)	6864 1274 + 1936 + (87*42)	6692 (10443 / 245) * 157
Gross profit	5232 11709 - 6477	4845 11709 - 6864	5017 11709 - 6692