Platinum Company’s inventory of XL125 on January 1 was 8,000 gallons, costing $ 0.45 per gallon (periodic inventory). In addition to this beginning inventory, purchases during the next six months were as follows:

The inventory on June 30 was 12,000 gallons. During this six-month period, Platinum Company sold XL125 for $ 0.70 per gallon. Assume that no liquid was lost through evaporation or leakage.

1. Find the cost of the ending inventory by the following methods:
a. Weighted-average-cost (Round to three decimal places.)
b. First-in, first-out
c. Last-in, first-out
2. Determine the cost of goods sold according to the three methods of costing inventory.
3. Determine the amount of the gross profit according to the three methods of costinginventory.

  • CreatedOctober 21, 2014
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