Reference no: EM131587203

You are provided with the following information for Najera Inc. for the month ended June 30, 2019. Najera uses the periodic method for inventory.

Date Description Quantity Unit Cost or Selling Price

June 1 Beginning inventory 40 $40

June 4 Purchase 135 44

June 10 Sale 110 70

June 11 Sale return 15 70

June 18 Purchase 55 46

June 18 Purchase return 10 46

June 25 Sale 65 75

June 28 Purchase 30 50

Calculate cost per unit. (Round answer to 2 decimal places, e.g. 5.25.)

Weighted-average cost per unit $ _______

Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round average-cost method answers to 2 decimal places, e.g. 1,250.25 and other answers to 0 decimal places, e.g. 1,250. Use weighted-average unit cost rounded to 2 decimal places for computations.)

LIFO FIFO Average-Cost   

The ending inventory $ _____ $ _____ $ _____   

The cost of goods sold $ _____ $ _____ $_____

Gross profit $ _____ $ _____ $_____

Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 1 decimal place, e.g. 51.2%.)

LIFO FIFO Average-Cost

Gross Profit Rate _____ % _____ % _________ %

Compare the results for the three cost flow assumptions and answer the following questions.

In this period of rising prices, LIFO gives the ______ cost of goods sold and the _____ gross profit. FIFO gives the _____ cost of goods sold and the _____ gross profit.