Solution-Calculate ending inventory and gross profit rate

Calculate ending inventory and gross profit rate

Reference no: EM13531558

You have the following information for McBride Inc. for the month ended October 31, 2012. McBride uses a periodic method for inventory.

			Unit Cost or
Date	Description	Units	Selling Price
Oct. 1	Beginning inventory	60	$24
Oct. 9	Purchase	120	26
Oct. 11	Sale	100	35
Oct. 17	Purchase	100	27
Oct. 22	Sale	60	40
Oct. 25	Purchase	70	29
Oct. 29	Sale	110	40

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.

Reference no: EM13531558

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Calculate ending inventory and gross profit rate

Reference no: EM13531558

Reference no: EM13531558

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