You have the following information for Company XYZ for themonth ended June 30, 2007. Company XYZ uses a periodic method forinventory.
| Date |
Description |
Quantity |
Unit Cost ofSelling Price |
| 1-Jun |
Beginning inventory |
25 |
$60 |
| 4-Jun |
Purchase |
85 |
64 |
| 10-Jun |
Sale |
70 |
90 |
| 11-Jun |
Sale return |
5 |
90 |
| 18-Jun |
Purchase |
40 |
68 |
| 18-Jun |
Purchase return |
15 |
68 |
| 25-Jun |
Sale |
50 |
95 |
| 28-Jun |
Purchase |
20 |
75 |
(a) Calculate (i) ending inventory (ii) cost of goods sold, (iii) gross profit, and (iv)gross profit rate under each of the following methods.(1) LIFO(2) FIFO(3) Average Cost. (Roundcost per unit to three decimal places.)
(b) compare results forthe three cost flow assumptions.