You are provided with the following information for Koetteri

You are provided with the following information for Koetteritz Inc. for the month ended June 30, 2017. Koetteritz uses the periodic method for inventory.

Date

Description

Quantity

Unit Cost or
Selling Price

Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round average-cost method answers to 2 decimal places, e.g. 1,250.25 and other answers to 0 decimal places, e.g. 1,250.)

LIFO

FIFO

AVERAGE-COST

Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 1 decimal place, e.g. 51.2%.)

LIFO

FIFO

AVERAGE-COST

Date		Description		Quantity		Unit Cost or Selling Price
June		1		Beginning inventory		41		$40
June		4		Purchase		135		43
June		10		Sale		105		70
June		11		Sale return		17		70
June		18		Purchase		55		45
June		18		Purchase return		9		45
June		25		Sale		64		76
June		28		Purchase		35		49

Solution

CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER FIFO METHOD PURCHASES / Purchase Return Sales /Sales Return CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit   Total Cost June , 01 Beginnning inventory 41 $         40.00 $   1,640.00 June , 04 Purchases 135 $          43.00 $            5,805.00 41 $         40.00 $   1,640.00 135 $         43.00 $   5,805.00 June , 10 Sales 41 $             40.00 $     1,640.00 64 $             43.00 $     2,752.00 71 $         43.00 $   3,053.00 June , 11 Sales Return -17 $             43.00 $       -731.00 88 $         43.00 $   3,784.00 June , 18 Purchases 55 $45 $            2,475.00 88 $         43.00 $   3,784.00 55 $45 $   2,475.00 June , 18 Purchases Returns -9 $45 $              -405.00 88 $         43.00 $   3,784.00 46 $45 $   2,070.00 June , 25 Sales 64 $             43.00 $     2,752.00 24 $         43.00 $   1,032.00 46 $45 $   2,070.00 June , 28 Purchase 35 $49 $            1,715.00 24 $         43.00 $   1,032.00 46 $45 $   2,070.00 35 $49 $   1,715.00 Total 152 0 $     6,413.00 105 $   4,817.00 Unit Amoun COGS as per FIFO Method 152 $6,413.00 Closing Balance as per FIFO 105 4817 CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER LIFO METHOD PURCHASES / Purchase Return Sales /Sales Return CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit   Total Cost June , 01 Beginnning inventory 41 $         40.00 $   1,640.00 June , 04 Purchases 135 $          43.00 $            5,805.00 41 $         40.00 $   1,640.00 135 $         43.00 $   5,805.00 June , 10 Sales 105 $             43.00 $     4,515.00 41 $         40.00 $   1,640.00 30 $         43.00 $   1,290.00 June , 11 Sales Return -17 $             43.00 $       -731.00 41 $         40.00 $   1,640.00 47 $         43.00 $   2,021.00 June , 18 Purchases 55 $45 $            2,475.00 41 $         40.00 $   1,640.00 47 $         43.00 $   2,021.00 55 $45 $   2,475.00 June , 18 Purchases Returns -9 $45 $              -405.00 41 $         40.00 $   1,640.00 47 $         43.00 $   2,021.00 46 $45 $   2,070.00 June , 25 Sales 46 $45 $     2,070.00 18 $             43.00 $         774.00 41 $         40.00 $   1,640.00 29 $         43.00 $   1,247.00 June , 28 Purchase 35 $49 $            1,715.00 41 $         40.00 $   1,640.00 29 $         43.00 $   1,247.00 35 $49 $   1,715.00 Total 152 0 $     6,628.00 105 $   4,602.00 Unit Amoun COGS as per LIFO Method 152 $    6,628.00 Closing Balance as per LIFO 105 $    4,602.00 CALCULATION OF THE UNIT COST AS PER AVERAGE COST METHOD Unit Rate Amount June , 01 Beginnning inventory 41 $          40.00 $            1,640.00 June , 04 Purchases 135 $          43.00 $            5,805.00 June , 18 Purchases 55 $45 $            2,475.00 June , 18 Purchases Returns -9 $45 $              -405.00 June , 28 Purchase 35 $49 $            1,715.00 $              257.00 $         11,230.00 Average Cost Per unit = $ 11,230/$257 = $                43.70 Ending inventory =                    105.0 $          43.70 $            4,588.13 Cost of Goods Sold                    152.0 $          43.70 $            6,641.87 CALCULATION OF Sales Sales June, 10                        105 $          70.00 $            7,350.00 June, 11 - Return                         -17 $          70.00 $          -1,190.00 June, 25                          64 $          76.00 $            4,864.00 $         11,024.00 FIFO LIFO Average Cost Sales $        11,024.00 $ 11,024.00 $         11,024.00 Cost OF Goods Sold $6,413.00 $6,628.00 $6,641.87 Gross Profit $4,611.00 $4,396.00 $4,382.13 Gross Profit Rate                    0.418               0.399                      0.398 Gross Profit Rate in % 41.8% 39.9% 39.8% Ending inventory $4,817.00 $4,602.00 $4,588.13