Question 1 Inventory information for Part 311 of Crane Corp. discloses the follo

Question

Question 1 Inventory information for Part 311 of Crane Corp. discloses the following information for the month of June. 295 units $12 June 10 Sold 196 units @ $30 15 Sold 505 units @ $31 27 Sold 296 units @ $33 June 1 Balance 11 Purchased 799 units $15 20 Purchased 498 units $16 Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO LIFO FIFO Cost of Goods Sold 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

Calculate following :

2) Ending inventory under LIFO perpetual = (99*12+294*15+202*16) = 8830

3) Gross profit = Sales-cost of goods sold

= 31303-14070

Gross profit (FIFO) = 17233

FIFO LIFO Ending inventory (498*16+97*15) = 9423 (295*12+300*15) = 8040 Cost of goods sold (295*12+702*15) = 14070 (498*16+499*15) = 15453

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