Question: what is the solution to this problem? PROBLEM SET B Ming Company uses a perpetual inventory system. It entered into the following purchases and sales
PROBLEM SET B Ming Company uses a perpetual inventory system. It entered into the following purchases and sales trans- actions for April. (For specific identification, the April 9 sale consisted of 8 units from beginning inven- tory and 27 units from the April 6 purchase; the April 30 sale consisted of 12 units from beginning inventory, 3 units from the April 6 purchase, and 10 units from the April 25 purchase.) Problem 6-1B Perpetual: Alternative cost flows P1 Units Sold at Retail Units Acquired at Cost Activities Date 20 units o $3,000.00 per unit 30 units a $3,500.00 per unit 35 units a $12.000.00 per unit Apr. 1 Apr. 6 Apr 9 Apr. 17 Apr. 25 Beginning inventory.... Purchase... Sales ... Purchase... Purchase Sales ... Total... 5 units 10 units $4,500.00 per unit $4,800.00 per unit $14,000.00 per unit 25 units 60 units Apr. 30 65 units Required 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units in ending inventory 3. Compute the cost assigned to ending inventory using (a) FIFO, (D) LIPO, (e) weighted average, and (d) specific identification. (Round all amounts to cents.) 4. Compute gross profit earned by the company for each of the four costing methods in part 3. Check (3) Ending inventory FEO 524.000 UFO $15,000, WA $20.000 (4) LIFO gross profit. $549.500
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
