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During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost January 1 Beginning inventory 47 $39
During the year, TRC Corporation has the following inventory transactions.
Date Transaction Number of Units Unit Cost Total Cost
January 1 Beginning inventory 47 $39 $1,833
April 7 Purchase 127 41 5,207
July 16 Purchase 197 44 8,668
October 6 Purchase 107 45 4,815
478 $20,523
For the entire year, the company sells 426 units of inventory for $57 each.
Required:
1-a & b. Using FIFO, calculate ending inventory and cost of goods sold.
1-c & d. Using FIFO, calculate sales revenue and gross profit.
2-a & b. Using LIFO, calculate ending inventory and cost of goods sold.
2-c & d. Using LIFO, calculate sales revenue and gross profit.
3-a & b. Using weighted-average cost, calculate ending inventory and cost of goods sold.
3-c & d. Using weighted-average cost, calculate sales revenue and gross profit.
4. Determine which method will result in higher profitability when inventory costs are rising.
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Step: 1
1 FIFO FirstIn FirstOut Method a b Ending Inventory and Cost of Goods Sold COGS The company sold 426 ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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