Question

Sheila Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for May.
Required
1. Compute cost of goods available for sale and the number of units available for sale.
2. Compute the number of units in ending inventory.
3. Compute the cost assigned to ending inventory using
(a) FIFO,
(b) LIFO,
(c) Weighted average,
(d) Specific identification. (Round per unit costs to three decimals, but inventory balances to the dollar.) For specific identification, the May 9 sale consisted of 80 units from beginning inventory and 100 units from the May 6 purchase; the May 30 sale consisted of 200 units from the May 6 purchase and 100 units from the May 25 purchase.
4. Compute gross profit earned by the company for each of the four costing methods in part 3.


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  • CreatedMarch 18, 2015
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