E6A-26 Comparing ending merchandise inventory, cost of goods sold, and gross profit using the periodic inventory system—FIFO, LIFO, and weighted- average methods
Assume that Heavenly Coffee Shop completed the following periodic inventory transactions for a line of merchandise inventory:
Jun. 1Beginning merchandise inventory ......19 units @ $ 27 each
12 Purchase................ 7 units @ $ 28 each
20 Sale...................11 units @ $ 39 each
24 Purchase................14 units @ $ 29 each
29 Sale...................21 units @ $ 39 each
Requirements
1. Compute ending merchandise inventory, cost of goods sold, and gross profit using the FIFO inventory costing method.
2. Compute ending merchandise inventory, cost of goods sold, and gross profit using the LIFO inventory costing method.
3. Compute ending merchandise inventory, cost of goods sold, and gross profit using the weighted-average inventory costing method.