Harold Co. reported the following current-year purchases and sales data for its only product.
Date Activities Units Acquired at Cost Units sold at Retail
Jan. 1 Beginning Inventory 100 units @$10 = $1,000
Jan. 10 Sales
90
units @ $40
Mar. 14 Purchase 250 units @$15 = 3,750
Mar. 15 Sales
140
units @$40
July. 30 Purchase 400 units @$20 = $8,000
Oct. 5
Sales
300 units @ $40
Oct. 26 Purchase 600
units @$25 = $15,000
Totals
1,350 units $27,750 530 units
Harold uses a perpetual inventory system.
Requirements:
1) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
2) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
3) Compute the gross margin for FIFO and LIFO method.
Click here: 2. Harold Co. reported the following current-year purchases and sales data for its only product
