Purchase Date Units Items Unit Price Total

$10/1/$XX $2$ Candy Bars $$0\mathrm{.}25$ $$0\mathrm{.}50$

$10/15/$XX $2$ Candy Bars $$0\mathrm{.}30$ $$0\mathrm{.}60$

$10/31/$XX $1$ Candy Bars $$0\mathrm{.}40$ $$0\mathrm{.}40$

$5$ Total Cost of Inventory $$1\mathrm{.}50$

Sales $-$ Sell $3$ Candy Bars for $$1\mathrm{.}00$ each on $11/4/$XX$.$

Answer the following questions based on the three inventory Methods

FIFO

LIFO

Weighted Average

INVENTORY COSTING METHODS

Purchase date Units Items

Unit

Price Total

$10/1/20$XX $2$ Candy bars $$0\mathrm{.}25$ $$0\mathrm{.}50$

$10/15/20$XX $2$ Candy bars $$0\mathrm{.}30$ $$0\mathrm{.}60$

$10/31/20$XX $1$ Candy bars $$0\mathrm{.}40$ $$0\mathrm{.}40$

$5$ Total Cost of Inventory $$1\mathrm{.}50$

SALES$-$sell $3$ candy bars for $$1\mathrm{.}00$ each on $11/4/$XX

Find out what the cost of goods sold would be using these different methods:

FIFO

Purchased Date Units X Unit Price $=$ Cost Of Goods Sold

X $=$

X $=$

What is the cost of goods sold?

What is the cost of the remaining inventory?

What is the total sales revenue?

What is Gross Profit?

LIFO

Purchased Date Units X Unit Price $=$ Cost Of Goods Sold

X $=$

X $=$

What is the cost of goods sold?

What is the cost of the remaining inventory?

What is the total sales revenue?

What is Gross Profit?

Average Cost

Units X Cost Per Unit Cost Of Goods Sold

X $=$

What is the cost of goods sold?

What is the cost of the remaining inventory?

What is the total sales revenue?

What is Gross Profit?

Which method has the highest cost of goods sold?

Which method has the lowest cost of goods sold?

Answer rating: 100% (QA)

To determine the cost of goods sold cost of remaining inventory and total sales revenue using the FI... View the full answer