Calculate quarter 2 gross profit

Reference no: EM133538037

Case: The Hester Corporation, a diversified distribution company, purchases cartons of canned golf balls from the LongDistance Company and markets the balls under the Hester brand name. Hester started operations on January 1, 2022. In the table below, Quarter 1 represents the time period from January 1, 2022 to March 31, 2022 and Quarter 2 represents the time period from April 1, 2022 to June 30, 2022. Hester began operations on January 1, 2022 with no inventory.

Purchases and sales data for Hester's first two quarters of business are shown below:
Quarter 1
Sales 80,000 cartons at $8.00 per carton
Purchases January 20,000 cartons at $5.00
February 35,000 cartons at $5.10
March 40,000 cartons at $5.40
Quarter 2
Sales 168,000 cartons at $9.00 per carton
Purchases April 47,000 cartons at $5.60
May 50,000 cartons at $5.70
June 60,000 cartons at $6.00

Question 1. Calculate the Quarter 2 ending inventories (in dollars) using the LIFO inventory valuation method.

Question 2. Calculate Quarter 2 GROSS PROFIT using the LIFO inventory valuation method.

Question 3. Calculate the Quarter 2 ending inventories (in dollars) using the FIFO inventory valuation method.

Question 4. Calculate Quarter 2 GROSS PROFIT using the FIFO inventory valuation method.

Reference no: EM133538037

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