QUESTION #2:

Instructions:

(a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate

under each of the following methods.

FIFO.

Average-cost.

COMPANY INFO:

You are provided with the following information for Senta Ltd. for the month ended October 31, 2017. Senta uses a periodic method for inventory.

Unit Cost or

Date Description Units Selling Price

October 1 Beginning inventory 60 24

October 9 Purchase 120 26

October 11 Sale 100 35

October 17 Purchase 70 27

October 22 Sale 65 40

October 25 Purchase 80 28

October 29 Sale 120 40

(a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate

under each of the following methods. (1) FIFO. (2) Average-cost.

1) .FIFO

2.). Average cost