Compute cost assigned to ending inventory using fifl

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A company uses a prepetual inventory system. It entered intothe following calendar year 2009 purchases and salestransactions.

Date Activities Units Acquired at Cost Units Sold at Retail

Jan.1 Begininginventory............... 770 units @$50/unit
Feb. 10 Purchase............................. 420units @ $41/unit
Mar.13 Purchase.............................. 260 units @ $25/unit
Mar.15 Sales..................................... 770 units @ $75/unit
Aug. 21 Purchase............................... 180 units @ $49/unit
Sept. 5 Purchase............................... 585units @ $42/unit
Sept. 10 Sales..................................... 650units @ $75/unit
Totals.................................... 2,215units 1,420 units

a) Compute the cost assigned to ending inventory using(1) FIFL, (2) LIFO, (3) specific identification units sold consist of 95 unitsfrom beginning inventory, 175 from a February 10 purchase, 70from a March 13 purchase, and 455from a September 5 purchase, and (4) weighted average - round per unit cost to three decimalsand inventory balances to the dollar.

b) Compute gross profit earned by the company.

Reference no: EM13258963

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