Question: Use the following information for the Exercises below. b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. (c)
Use the following information for the Exercises below. b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
(c) Compute the gross margin for each method.
| Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||||||
| Jan. | 1 | Beginning inventory | 270 | units | @ $12.80 | = | $ | 3,456 | ||||||||
| Jan. | 10 | Sales | 220 | units | @ $42.80 | |||||||||||
| Mar. | 14 | Purchase | 400 | units | @ $17.80 | = | 7,120 | |||||||||
| Mar. | 15 | Sales | 340 | units | @ $42.80 | |||||||||||
| July | 30 | Purchase | 470 | units | @ $22.80 | = | 10,716 | |||||||||
| Oct. | 5 | Sales | 440 | units | @ $42.80 | |||||||||||
| Oct. | 26 | Purchase | 170 | units | @ $27.80 | = | 4,726 | |||||||||
| Totals | 1,310 | units | $ | 26,018 | 1,000 | units | ||||||||||
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