Explore BrainMass

Explore BrainMass

    Inventory calculations

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    You have the following information for McHugh Inc. for the month ended October 31, 2010. McHugh uses a periodic method for inventory.

    Unit Cost or
    Date Description Units Selling Price
    Oct. 1 Beginning inventory 60 $25
    Oct. 9 Purchase 120 26
    Oct. 11 Sale 100 35
    Oct. 17 Purchase 90 27
    Oct. 22 Sale 60 40
    Oct. 25 Purchase 80 29
    Oct. 29 Sale 110 40

    Calculate ending inventory, cost of goods sold, gross profit, and gross profit rate under each of the following methods. (When calculating average cost per unit round to 3 decimal places, e.g. 2.540. Round gross profit rate to 1 decimal place, e.g. 50.5 and all other answers to 0 decimal places, e.g. 5,550.)
    (1) LIFO.
    (2) FIFO.
    (3) Average cost.

    LIFO FIFO Average Cost
    Ending inventory $ ______ $ ______ $ ______
    Cost of goods sold $ ______ $ ______ $ ______
    Gross profit $ ______ $ ______ $ ______
    Gross profit rate ______% ______% ______%

    © BrainMass Inc. brainmass.com June 4, 2020, 12:02 am ad1c9bdddf
    https://brainmass.com/business/inventory/inventory-calculations-314998

    Solution Summary

    The solution explains inventory calculations under LIFO, FIFO and average cost

    $2.19

    ADVERTISEMENT