Exercise 810 1 LIFO 2 FIFO LINK TO TEXT LINK TO TEXT LINK TO

Exercise 8-10

(1)
LIFO

(2)
FIFO

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SUBMIT ANSWER

Exercise 8-10 Inventory information for Part 311 of Stellar Corp. discloses the following information for the month of June. June 1 Balance 301 units @ $12 June 10 Sold 197 units @ $29 11 Purchased 803 units @ $14 15 Sold 500 units @ $30 20 Purchased 502 units @ $16 27 Sold 297 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. (1) LIFO (2) FIFO Cost of Goods Sold $ $ Ending Inventory $ $ LINK TO TEXT 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 $ LINK TO TEXT 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) $ LINK TO TEXT Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER

Solution

Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.

Calculate ending inventory under LIFO perpetual method :

Ending inventory = (104*12+303*14+205*16) = 8770

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?

Under FIFO method perpetual and periodic inventory system calculation is same. so gross profit under FIFO method is $16903.