You have the following information for Wirth Inc. for the month ended June 30, 2012. Wirth uses the periodic method for inventory.
|
Unit Cost or |
|||
|
Date |
Description |
Quantity |
Selling Price |
|
Jun-01 |
Beginning inventory |
25 |
$60 |
|
Jun-04 |
Purchase |
85 |
63 |
|
Jun-10 |
Sale |
60 |
90 |
|
Jun-11 |
Sale return |
5 |
90 |
|
Jun-18 |
Purchase |
35 |
66 |
|
Jun-18 |
Purchase return |
15 |
66 |
|
Jun-25 |
Sale |
55 |
95 |
|
Jun-28 |
Purchase |
20 |
70 |
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 flow assumptions.