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.
Required:
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.
4. Assume that ending inventory is made up of 100 units from the
March 14 purchase, 120 units from the July 30 purchase, and all 600
units from the October 26 purchase. Using the specific identification
method, calculate the following.
(a) Cost of goods sold
(b) Gross profit
Click here: 3. Harold Co. reported the following current-year purchases and sales data for its only product
