Solution-Compute the cost of goods sold and ending inventory

Compute the cost of goods sold and ending inventory

Reference no: EM132722297

Question - FIFO and LIFO - Periodic AND Perpetual - inventory method information for part 311 of Seminole Corp. discloses the following information for the month of June.

June 1 Balance 300 units @ $10

June 10 Sold 200 units @ $24

June 11 Purchased 800 units @11

June 15 Sold 500 units @25

June 20 Purchase 500 units @ $13

June 27 Sold 250 Units @ 27

Required -

a) Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.

b) Assuming that the perpetual inventory method is used and cost are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?

c) Assuming that the perpetual inventory method is used and cost are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO?

d) Why is it stated that LIFO usually produces a lower gross profit than FIFO?

Reference no: EM132722297

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Compute the cost of goods sold and ending inventory

Reference no: EM132722297

Reference no: EM132722297

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