UMPI Corporation's inventory information discloses the following information for June.

June 1 Balance 450 units @ $11 Sold June 15th 200 units @ $24

11 950 units purchased @ $13 15 575 units sold @ $25

20 525 units purchased @ $14 27 Sold 324 units @ $27

Instructions

3.1thru3 Calculate the cost of goods sold and period-end inventory under (1) LIFO, (2) FIFO, (3) Average Cost, assuming the periodic inventory method is used.

3.4thru6 Assuming that the perpetual inventory method is used and costs are calculated at each time of withdrawal, what is the cost of goods sold and finished inventory under (4) LIFO, (5) FIFO, (6) Average Cost?

3.7 Prepare adjustment journal entries to record the cost of goods sold for June for the perpetual inventory method only.

3.8 Explain why LIFO generally produces lower gross profit than FIFO.

Answer rating: 100% (QA)

313 Calculation of Cost of Goods Sold COGS and PeriodEnd Inventory Assuming the periodic inventory m... View the full answer