You are provided with the following information for Senta Ltd. for the month ended October 31, 2020. Senta uses a periodic method for inventory.

Instructions
a. Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods.
1. FIFO.
2. Average-cost.
b. Compare results for the two cost fl ow assumptions.

Transcribed Image Text:

Unit Cost or Selling Price Description Date Units October 1 Beginning inventory 60 €24 October 9 October 11 October 17 October 22 October 25 October 29 26 35 Purchase 120 Sale 100 70 Purchase 27 Sale 65 40 Purchase 28 80 120 Sale 40