You are provided with the following information for Koetteritz Inc. for the month ended June 30, 2020. Koetteritz uses the periodic method for inventory.

Instructions

a. Calculate

(i) Ending inventory,

(ii) Cost of goods sold,

(iii) Gross profit, 

(iv) Gross profit rate under each of the following methods.

(1) LIFO.

(2) FIFO.

(3) Average-cost.

b. Compare results for the three cost flow assumptions.

Transcribed Image Text:

Unit Cost or Date Description Quantity Selling Price June 1 Beginning inventory 40 $40 June 4 Purchase 135 43 June 10 Sale 110 70 June 11 Sale return 15 70 June 18 Purchase 55 46 June 18 Purchase return 10 46 June 25 Sale 65 76 June 28 Purchase 35 50