Reference no: EM132466067

Inventory

Consider the following inventory data for a firm using periodic inventory method

Date                                        Units              Unit Cost        $ Total

Sept 1 Inventory Balance        10 000                 45                  450 000

Sept 3 Purchase                      6 000               46.50                279 000

Sept 15 Purchase                   8 000                48                     384 000

Sept 20 Purchase                   15 000              44                        660 000

Sept 30 Inventory Balance          13 000           ?                                  ?

Question 1: Determine the cost of sales for the month of September under each of the following cost flow assumptions:

i. FIFO

ii. Weighted average.

Question 2: Also calculate the value of closing inventory under each of the cost flow assumptions as well as the gross profit and the gross margin if the average unit sales price for the period is $100/unit.