Suppose a Dover store in Madison, Missouri, ended September 2021 with 600,000 units of merchandise that...

Transcribed Image Text:

Suppose a Dover store in Madison, Missouri, ended September 2021 with 600,000 units of merchandise that cost $8 each. Suppose the store then sold 110,000 units for $990,000 during October. Further, assume the store made two large purchases during October as follows: (Click the icon to view the purchase information.) Read the requirements. Requirement 1. Calculate the store's gross profit under both FIFO and LIFO at October 31. Gross profit FIFO LIFO Requirement 2. What caused the FIFO and LIFO gross profit figures to differ? Gross profit under FIFO and LIFO differ because inventory costs Data table Oct 9 Oct 25 55,000 units @ $6.10 = $335,500 35,000 units @ $5.20 = $182,000 Print Done Requirements 1. Calculate the store's gross profit under both FIFO and LIFO at October 31. 2. What caused the FIFO and LIFO gross profit figures to differ? during the period. Print Done Suppose a Dover store in Madison, Missouri, ended September 2021 with 600,000 units of merchandise that cost $8 each. Suppose the store then sold 110,000 units for $990,000 during October. Further, assume the store made two large purchases during October as follows: (Click the icon to view the purchase information.) Read the requirements. Requirement 1. Calculate the store's gross profit under both FIFO and LIFO at October 31. Gross profit FIFO LIFO Requirement 2. What caused the FIFO and LIFO gross profit figures to differ? Gross profit under FIFO and LIFO differ because inventory costs Data table Oct 9 Oct 25 55,000 units @ $6.10 = $335,500 35,000 units @ $5.20 = $182,000 Print Done Requirements 1. Calculate the store's gross profit under both FIFO and LIFO at October 31. 2. What caused the FIFO and LIFO gross profit figures to differ? during the period. Print Done