Chapter 6 Homework Assignment

Problem One: During the year, Masks R Us Corporation has the following inventory transactions.

Date	Transaction	Number of Units	Unit Cost	Total Cost
Jan. 1	Beginning inventory	50	$42	$ 2,100
Apr. 7	Purchase	130	44	5,720
Jul. 16	Purchase	200	47	9,400
Oct. 6	Purchase	110	48	5,280
		490		$22,500

For the entire year, the company sells 440 units of inventory for $60 each.

Required:

1.

Using FIFO, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue, and (d) gross profit.

a) Ending Inventory
b) CGS
c) Sales Revenue
d) Gross Profit

2.

Using LIFO, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue, and (d) gross profit.

a) Ending Inventory
b) CGS
c) Sales Revenue
d) Gross Profit