You are provided with the following information for Najera Inc. for the month ended June 30, 2020.

Question:

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

Instructionsa. 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.

Compare results for the three cost flow assumptions.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...

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Step by Step Answer:

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a 1 LIFO i Ending Inventory ii Cost of Goods Sold June 1 4 40 40 50 44 1600 2200 Cost of goods avail...View the full answer

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Related Book For answer-question

Financial and Managerial Accounting

ISBN: 978-1119392132

3rd edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

See More Books

Question Posted: Feb 13, 2020 07:29 AM

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You are provided with the following information for Najera Inc. for the month ended June 30, 2020.

Question:

Quantity Unit Cost or Selling Price Description Date June 1 Beginning inventory $40 40 June 4 Purchase 135 44 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 75 June 28 Purchase 30 50

Step by Step Answer:

a 1 LIFO i Ending Inventory ii Cost of Goods Sold June 1 4 40 40 50 44 1600 2200 Cost of goods avail...View the full answer

Financial and Managerial Accounting

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