Inventory

Consider the following inventory data for a firm using periodic inventory method

Date Units Unit Cost $ Total

Sept 1 Inventory Balance 10 000 45 450 000

Sept 3 Purchase 6 000 46.50 279 000

Sept 15 Purchase 8 000 48 384 000

Sept 20 Purchase 15 000 44 660 000

Sept 30 Inventory Balance 13 000 ? ?

Determine the cost of sales for the month of September under each of the following cost flow

assumptions:

i. FIFO

ii. Weighted average.

Also calculate the value of closing inventory under each of the cost flow assumptions as well as the gross

profit and the gross margin if the average unit sales price for the period is $100/unit.