To illustrate the different inventory cost flow assumptions, consider the following example of Russell Company, which purchased inventory at three different times at three different prices.

Fill in the table below, calculate Russell Company’s sales revenue, cost of goods sold, gross profit and ending inventory balance under each of the three inventory cost flow assumptions. Round your answer to the nearest dollar. However, do not round intermediate calculations.

  

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Units Cost per Unit Total Cost May 1 Purchase 35 $ 8 $ 280 May 15 Purchase 35 16 560 May 20 Purchase 35 19 665 Goods available for sale 105 $ 1,505 Units Cost per Unit Total Cost May 1 Purchase 35 $ 8 $ 280 May 15 Purchase 35 16 560 May 20 Purchase 35 19 665 Goods available for sale 105 $ 1,505

Answer rating: 100% (QA)

Solution Working note Units pst per unit Total Cost LIFO Average Cost 1440 Particul... View the full answer