Ch 7 (Inventory FIFO and LIFO) Class Note Practice Problems and SOLUTIONS

# Ch 7 (Inventory FIFO and LIFO) Class Note Practice Problems and SOLUTIONS

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INVENTORY VALUATION Gator Co. has the following records for inventory for the year: Date Units \$/Unit Total Cost Beginning Inventory 150 3.70 555 February Purchases 300 3.80 1,140 June Purchases 200 3.90 780 October Purchases 200 4.00 800 850 3,275 During the year, 650 units were sold at \$8 each. Calculate the dollar amounts for Ending Inventory, Cost of Goods Sold, and Gross Profit under the following three inventory costing methods: FIFO Ending Inventory: (200 x 4) \$____ 800 _________ COGS: (150 x 3.7) + (300 x 3.8) + (200 x 3.9) \$____ 2,475 _________ Gross Profit: Sales Rev = 650 x 8 = 5,200 GP = SR – COGS = 5,200 – 2,475 = \$____ 2,725 _________ LIFO Ending Inventory: (150 x 3.7) + (50 x 3.8)

Unformatted text preview: \$____ 745 __________ COGS: (200 x 4) + (200 x 3.9) + (250 x 3.8) \$____ 2,530 ________ Gross Profit: Sales Rev = 650 x 8 = 5,200 GP = SR – COGS = 5,200 – 2,530 = \$_____ 2,670 ________ Weighted Average (Round your weighted average to 2 decimal places) Cost of goods available for sale = 3,275 = Price per unit \$_____ \$3.85 ______ Number of units available for sale 850 Ending Inventory: 200 units x 3.85 = \$_____ 770 ________ COGS: 650 units x 3.85 = \$_____ 2,502.50 ______ Gross Profit: Sales Rev = 650 x 8 = 5,200 \$_____ 2,697.50 ______ GP = SR – COGS = 5,200 – 2,502.50 = 1...
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