Question: Consider the following inventory data for the first two months of the year for Healthy Snacks International: Date Total Units Unit Cost Beginning inventory hand
Consider the following inventory data for the first two months of the year for Healthy Snacks International:
|
| Date |
| Total Units |
| Unit Cost |
| Beginning inventory hand | 1-Jan |
| 65,000 |
| $2.10 |
| Purchases during month: | 5-Jan |
| 104,200 |
| $2.20 |
|
| 20-Jan |
| 292,800 |
| $2.25 |
|
|
|
|
|
|
|
| Sales of Inventory: | 25-Jan |
| 383,500 |
|
|
|
|
|
|
|
|
|
| Purchases during month: | 8-Feb |
| 285,400 |
| $2.35 |
|
| 23-Feb |
| 158,700 |
| $2.75 |
|
|
|
|
|
|
|
| Sales of Inventory: | 27-Feb |
| 408,800 |
|
|
|
|
|
|
|
|
|
Assume all sales occur at a sales price of $6 per unit.
Calculate the total cost of goods sold and gross profit for January and February and the ending inventory as of February 28 under the FIFO, LIFO, and weighted average costing methods, assuming the use of a perpetual inventory management system.
- FIFO:
- Cost of Goods Sold: ___________________________
- Ending Inventory: ___________________________
- Gross Profit: ___________________________
- LIFO:
- Cost of Goods Sold: ___________________________
- Ending Inventory: ___________________________
- Gross Profit: ___________________________
- Weighted-average (round unit costs to four decimal places):
- Cost of Goods Sold: ___________________________
- Ending Inventory: ___________________________
Gross Profit: ___________________________
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
