Exercise 8-10 Inventory information for Part 311 of Marin Corp. discloses the fo

Question

Exercise 8-10 Inventory information for Part 311 of Marin Corp. discloses the following information for the month of June. June1 Balance 301 units$12 June 10 Sold 200 units $28 11 Purchased 804 units@ $14 20 Purchased 497 units $15 15 Sold 504 units$29 27 Sold 304 units $32 Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO. Cost of Goods Solds Ending Inventory 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 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)

Explanation / Answer

Date Units Unit cost Total 1-Jun 301 12 3612 11-Jun 804 14 11256 20-Jun 497 15 7455 Total 1602 22323 Ending inventory units=1602-200-504-304= 594 1 LIFO: Ending inventory 7714 =(301*12)+(293*14) Cost of goods sold 14609 =22323-7714 FIFO: Ending inventory 8813 =(497*15)+(97*14) Cost of goods sold 13510 =22323-8813 2 Ending inventory at LIFO 8307 =(301-200)*12+(804-504)*14+(497-304)*15 3 Sales value 29944 =(200*28)+(504*29)+(304*32) Gross Profit 16434 =29944-13510

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