Question

Exercise 8-10 a-c

Inventory information for Part 311 of Windsor Corp. discloses the following information for the month of June.

June   1		Balance		295 units @ $12		June 10		Sold		196 units @ $30
11		Purchased		799 units @ $15		15		Sold		505 units @ $31
20		Purchased		498 units @ $16		27		Sold		296 units @ $33

	Your answer is correct.

Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.

		(1) LIFO		(2) FIFO
Cost of Goods Sold		$enter a dollar amount		$enter a dollar amount
Ending Inventory		$enter a dollar amount		$enter a dollar amount SHOW SOLUTION LINK TO TEXT

	Your answer is correct.

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?

The ending inventory at LIFO

$enter The ending inventory at LIFO in dollars SHOW SOLUTION LINK TO TEXT

	Your answer is incorrect. Try again.

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO?

Gross Profit (FIFO)

$enter the Gross Profit (FIFO) in dollars

Answer 1

Calculate following

	Unit	Unit Cost	Total Cost
Beginning inventory	295	12	3540
Purchase 1	799	15	11985
Purchase 2	498	16	7968
Total	1592		23493

Sale unit = 997 Sales unit

Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO. (1) LIFO (2) FIFO Cost of Goods Sold 7968+499*15 = 15453 3540+702*15 = 14070 Ending Inventory 23493-15453 = 8040 23493-14070 = 9423

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO? The ending inventory at LIFO $enter The ending inventory at LIFO in dollars 99*12+294*15+202*16 = 8830 Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO? Gross Profit (FIFO) $31303-14070 = 17233