Purchase Solution

Cost of Goods Sold and Ending Inventory

Not what you're looking for?

Ask Custom Question

1. Calculate Cost of Goods Sold (COGS) and Ending Inventory (EI) under FIFO, LIFO, and W/A (Periodic Inventory).

The units of an item available for sale during the year were as follows:

Jan. 1 Inventory 6 units at $28
Feb. 4 Purchase 12 units at $30
July 20 Purchase 14 units at 32
Dec. 30 Purchase 8 units at $33

There are 11 units of the item in the physical inventory at December 31.

2. If the sale price per item is $50 each, how much is the gross margin under each method?

I have the first portion done (Question 1) on the attachment. Question 2 I'm confused.

Purchase this Solution

Solution Summary

Solution contains calculations of Cost of Goods Sold and Ending Inventory (EI) under FIFO, LIFO, and W/A (Periodic Inventory).

Solution Preview

Response:
Jan. 1 Inventory 6 units at $28= 168
Feb. 4 Purchase 12 units at $30= 360
July 20 Purchase 14 units at $32= 448
Dec. 30 Purchase 8 units at $33= 264
40 units $1240  Cost of Goods Available for Sale
-Ending Inv 11
Sold 29

Cost of ending inventory under FIFO: -
Date of ...

Purchase this Solution


Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Motivation

This tests some key elements of major motivation theories.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.