Reference no: EM131624543
Vitalité Medical Sales, Inc. (VMS) has sales of 1,875 units, which were sold at $350 per unit. They recorded a beginning inventory with a count of 550 units and a total value of $44,000. During the Quarter, VMS purchased items four (4) times. The purchases were as follows:
1. January 21st - some units were purchased at $80.00 per item for a total of $60,000
2. February 11th - 700 Units were purchased at the sale price of $75.00/unit
3. February 29th - a total of 200 Units were purchased for a total of $18,000, and
4. March 24th - 350 units were purchased at $110.00 per unit.
Compute the following under LIFO and FIFO Methods, utilizing the table under PROBLEM 3 at the end of this booklet as a set-up guide. Please be sure to compute LIFO first (labeling the table LIFO) and then FIFO (labeling the table FIFO):
1) Gross Sales (Revenue)
2) Dollar amount of Beginning and Ending inventory.
3) Cost of Goods Sold (Cost of Sales)
4) Gross Profit
5) Percent of the Cost of Goods Sold
6) Average Inventory for the period
7) Inventory Turnover for the period
Note the example format at the end of this booklet under PROBLEM 3 is shown as an example. Please utilize the format for LIFO and then copy the same format and complete FIFO. There should be two of the above formatted tables in your Answer Spreadsheet, with each representing the appropriate LIFO or FIFO data and process.