Question

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

June   1		Balance		302 units @ $17		June 10		Sold		200 units @ $40
11		Purchased		795 units @ $20		15		Sold		496 units @ $42
20		Purchased		498 units @ $22		27		Sold		299 units @ $45

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

eTextbook and Media

  

  

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

eTextbook and Media

  

  

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

show work and explain

Answer 1

Calculate following

	Unit	Unit Cost	Total Cost
Beginning inventory	302	17	5134
Purchase 1	795	20	15900
Purchase 2	498	22	10956
Total	1595		31990

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		10956+497*20 = 20896		5134+693*20 = 18994
Ending Inventory		31990-20896 = 11094		31990-18994 = 12996

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

$12092

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)

$42287-18994 = 23293