Global Sales, Inc. (GSI) is a hypothetical distributor of consumer products, including bars of violet essence soap.

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Global Sales, Inc. (GSI) is a hypothetical distributor of consumer products, including bars of violet essence soap. The soap is sold by the kilogram. GSI began operations in 2009, during which it purchased and received initially 100,000 kg of soap at 110 yuan/kg, then 200,000 kg of soap at 100 yuan/kg, and finally 300,000 kg of soap at 90 yuan/kg. GSI sold 520,000 kg of soap at 240 yuan/kg. GSI stores its soap in its warehouse so that soap from each shipment received is readily identifiable. During 2009, the entire 100,000 kg from the first shipment received, 180,000 kg of the second shipment received, and 240,000 kg of the final shipment received was sent to customers. Answers to the following questions should be rounded to the nearest 1,000 yuan.

1. What are the reported cost of sales, gross profit, and ending inventory balances for 2009 under the specific identification method?

2. What are the reported cost of sales, gross profit, and ending inventory balances for 2009 under the weighted average cost method?

3. What are the reported cost of sales, gross profit, and ending inventory balances for 2009 under the FIFO method?

4. What are the reported cost of sales, gross profit, and ending inventory balances for 2009 under the LIFO method?

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International Financial Statement Analysis CFA Institute Investment Series

ISBN: 9780470287668

1st Edition

Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie

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