P6-5B You are provided with the following information for Charlote Inc. for the month ended June 30, 2008. Charlote uses the periodic method for inventory
Selling Price
June 1 Beginning inventory 25 $60
June 4 Purchase 85 64
June 10 Sale 70 90
June 11 Sale return 10 90
June 18 Purchase 35 68
June 18 Purchase return 5 68
June 25 Sale 40 95
June 28 Purchase 20 72
Instructions
(a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods. (Use three decimal places for average-cost.)
(1) LIFO. (2) FIFO. (3) Average-cost.
(b) Compare results for the three cost flow assumptions.
No comments:
Post a Comment