Question

Suppose a Sams store in Kansas City, Missouri, ended May 2014 with 70,000 units of merchandise that cost an average of $7 each. Suppose the store then sold 65,000 units for $850,000 during June. Further, assume the store made two large purchases during June as follows:


Requirements
1. At June 30, the store manager needs to know the store’s gross profit under both FIFO and LIFO. Supply this information.
2. What caused the FIFO and LIFO gross profit figures todiffer?


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  • CreatedJuly 25, 2014
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