You have the following information for Waner Inc. for the month ended June 30, 2010. Waner uses the periodic method for inventory.

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.

(1) LIFO.

(2) FIFO.

(3) Average cost. (Round cost per unit to three decimal places.)

(b) Compare results for the three cost flowassumptions.

Transcribed Image Text:

Unit Cost or Selling Price $60 Date Description Quantity 25 85 70 JuneBeginning inventory June 4 June 10 June 11 June 18 June 18 June 25 June 28 Purchase Sale return Purchase Purchase return 35 15 68 68 95 70 Purchase 20