Question: Read the following memorandum and complete the assigned task. Instructions 1. What is the new value of the ending inventory? 2. Assume that all 36

Read the following memorandum and complete the assigned task.

MEMORANDUM Toys Things TO: FROM: Accounting Clerk Accounting Manager DATE: June 30,

Instructions

1. What is the new value of the ending inventory?

2. Assume that all 36 dolls were sold for $21.95. What is the gross profit for this item?

MEMORANDUM Toys Things TO: FROM: Accounting Clerk Accounting Manager DATE: June 30, 20-- SUBJECT: Change in Inventory Method We have received approval to change from the LIFO to the FIFO method of determining our inventory costs. Please calculate the cost of the Walk-A- Long Dolls using the FIFO method. There are 36 dolls in inventory. Walk-A-Long Dolls 8@ $15.45 Beginning inventory Purchases 6/11 12@ $15.95 6/17 10@ $16.25 6/22 6@ $16.40

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