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    Cost of Goods Sold and Ending Inventory

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    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.

    © BrainMass Inc. brainmass.com June 3, 2020, 7:40 pm ad1c9bdddf
    https://brainmass.com/business/inventory/cost-of-goods-sold-and-ending-inventory-107746

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    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 ...

    Solution Summary

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

    $2.19

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