!! lofli (10 complete) This Quiz: 100 pts poss Question He Assume that JL Tire S
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!! lofli (10 complete) This Quiz: 100 pts poss Question He Assume that JL Tire Store completed the following perpetual inventory transactions for a line of Sires (Cick the icon to vlew the transactions ) Read the requirements Requirement 1. Compute cost of goods sold and gross proft using the FIFO invenory costing method Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing mothod Ener the ansactons in cheonological order, calulating new inventory on hand balances ator each ransaction. Once all of the tansactions have been entered into the perpetual recoed, calculate the quantity and total cost of menchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first) Cost of Goods Soled Inventory on Hand UnitTotal Unit Total UniTotal Date Quantity Cost Cost Quantity Cost CostQantityCost Cost May 1 Enter any number in the edit felds and then continue to the next question 8 4 5 6 8 9Explanation / Answer
Answer: Under FIFO goods purchased first are sold first Requirement 1 FIFO Purchases Cost of Goods sold Ending Inventory Date Quantity Unit Cost Total cost Quantity Unit Cost Total cost Quantity Unit Cost Total cost 01-May 22 $ 53 $ 1,166 0 $ - $ - $ 22 $ 53 $ 1,166 11-May 14 $ 71 $ 994 $ - $ 22 $ 53 $ 1,166 $ - 14 $ 71 $ 994 23-May $ - 18 $ 53 $ 954 $ 4 $ 53 $ 212 $ - 14 $ 71 $ 994 26-May 10 $ 74 $ 740 $ - $ 4 $ 53 $ 212 $ - 14 $ 71 $ 994 $ - 10 $ 74 $ 740 29-May 4 $ 53 $ 212 9 $ 74 $ 666 14 $ 71 $ 994 $ - 1 $ 74 $ 74 $ - Total $ 2,900 $ 2,234 $ 666 Cost of goods sold $ 2,234 Ending Inventory $ 666 (9*$74) Sales $ 2,886 ($18*78+$19*78) Less:Cost of goods sold $ 2,234 Gross Profit $ 652 Requirement 2 LIFO Under LIFO goods purchased last are sold first Purchases Cost of Goods sold Ending Inventory Date Quantity Unit Cost Total cost Quantity Unit Cost Total cost Quantity Unit Cost Total cost 01-May 22 $ 53 $ 1,166 0 $ - $ - $ 22 $ 53 $ 1,166 11-May 14 $ 71 $ 994 $ - $ 22 $ 53 $ 1,166 $ - $ - 14 $ 71 $ 994 23-May $ - 14 $ 71 $ 994 $ 18 $ 53 $ 954 $ - 4 $ 53 $ 212 $ - 26-May 10 $ 74 $ 740 $ - $ 18 $ 53 $ 954 $ - 10 $ 74 $ 740 29-May 10 $ 74 $ 740 9 $ 53 $ 477 9 $ 53 $ 477 $ - Total $ 2,900 $ 2,423 $ 477 Cost of goods sold $ 2,423 Ending Inventory $ 477 (9*$53) Sales $ 2,886 ($18*78+$19*78) Less:Cost of goods sold $ 2,423 Gross Profit $ 463 Requirement 3 Average cost method Purchases Cost of Goods sold Ending Inventory Date Quantity Unit Cost Total cost Quantity Unit Cost Total cost Quantity Unit Cost Total cost 01-May 22 $ 53 $ 1,166 $ - $ 22 $ 53 $ 1,166 11-May 14 $ 71 $ 994 $ - $ 36 $ 60 $ 2,160 (22+14) =(2160/36) 1166+994) 23-May 18 $ 60 $ 1,080 $ 18 $ 60 $ 1,080 (36-18) 26-May 10 $ 74 $ 740 $ - 28 $ 65 $ 1,820 (18+10) =(1820/28) (1080+740) 29-May 19 $ 65 $ 1,235 9 $ 65 $ 585 Total $ 2,900 $ 2,315 $ 585 Cost of goods sold $ 2,315 Ending Inventory $ 585 (9*$53) Sales $ 2,886 ($18*78+$19*78) Less:Cost of goods sold $ 2,315 Gross Profit $ 571
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