Fit Universe began July with merchandise inventory of 65 cra

Fit Universe began July with merchandise inventory of 65 crates of vitamins that cost a total of $3,835.

Data Table Jul. 5 Purchase 145 crates 80 each 160 crates 100 each 18 Purchase 70 crates 90 each 175 crates102 each 13 Sale 26 Sale Print Done

Solution

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jul 65 59 3835 5-Jul 145 80 11600 65 59 3835 145 80 11600 13-Jul 65 59 3835 95 80 7600 50 80 4000 18-Jul 170 90 15300 50 80 4000 170 90 15300 26-Jul 50 80 4000 125 90 11250 45 90 4050 TOTAL 315 26900 335 26685 45 4050 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jul 65 59 3835 5-Jul 145 80 11600 65 59 3835 145 80 11600 13-Jul 145 80 11600 15 59 885 50 59 2950 18-Jul 170 90 15300 50 59 2950 170 90 15300 26-Jul 170 90 15300 5 59 295 45 59 2655 TOTAL 315 26900 335 28080 45 2655 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jul 65 59 3835 5-Jul 145 80 11600 65 59 3835 145 80 11600 Average 210 73.5 15435 13-Jul 160 73.5 11760 50 73.5 3675 18-Jul 170 90 15300 50 73.5 3675 170 90 15300 Average 220 86.25 18975 26-Jul 175 86.25 15094 45 86.25 3881 TOTAL 315 26900 335 26854 45 3881 Req 4: Sales (160*100+175*102) 33850 Less: Cost of Goods sold 26854 Gross Margin under Average method 6996 Req 5: LIFO method provide least tax.