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ACC208_7-47 LIFO and FIFO

# ACC208_7-47 LIFO and FIFO - Revenues from Sales 102,000...

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LIFO and FIFO 2 Single Step Income Statement 7-47 LIFO and FIFO 8-Jul 5,000 tons @ \$10 per ton 13-Jul 1,000 tons @ \$11 per ton 22-Jul 900 tons @ \$12 per ton 1. Compute the inventory cost as of July 31 using a)LIFO and b)FIFO 2. Compute the gross profit using each method. The inventory of the Shenandoah Gravel Company on June 30 Shows 1,000 tons at \$9 per ton. A physical Inventory on July 31 shows a total of 1,100 tons on hand. Revenue from sales of gravel for July total \$102,000. The following purchases where made durin July:

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Shenandoah Grovel Company Inventory Cost July 31, 20xx LIFO and FIFO 3 a) LIFO Purchases Sales Inventory 30-Jun 1000tons @ \$9 = 8-Jul 5,[email protected]\$10 = \$50,000 13-Jul 1,[email protected]\$11 = 11,000 22-Jul [email protected]\$12 = 10,800 71,800 173799.84

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Unformatted text preview: Revenues from Sales 102,000 Inventory at 7/31/2009 1,100 tons @ \$9 = Gross profit 173,800 - 71,800=102,000 b)FIFO Purchases Sales Inventory 30-Jun 1000tons @ \$9 = 8-Jul 5,[email protected]\$10 = \$50,000 13-Jul 1,[email protected]\$11 = 11,000 22-Jul [email protected]\$12 = 10,800 71,800 6,[email protected] 173799.84 Revenues from Sales 102,000 Inventory at 7/31/2009 900tons \$12 = 200tons \$11 = 1,100 tons Gross profit 173,800 - 71,800=102,000 Shenandoah Grovel Company Inventory Cost July 31, 20xx LIFO and FIFO 3 \$9,000 9,900 \$9,000 10,800 \$2,200 13,000 LIFO and FIFO 4 Reference Charles T Horngren, Gary L. Sundem, John A. Elliot and Donna R. Philbrick. (2006). Introduction to Financial Accounting. New Jersey: Pearson Prentice Hall....
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ACC208_7-47 LIFO and FIFO - Revenues from Sales 102,000...

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