Solution-Calculate the cost of goods sold under the fifo

Calculate the cost of goods sold under the fifo

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Reference no: EM132709159

Question - Evans Company had the following transactions in the month of March involving purchases and sales of inventory:

March 1: Beginning Inventory 65 Units @ $60/unit.

March 5: Purchase of 210 Units @ $64/unit.

March 9: Sale of 200 Units @ $90/unit.

March 18: Purchase of 65 Units @ $65/unit.

March 25: Purchase of 95 Units @ $70/unit.

March 29: Sale of 75 Units @ $100/unit.

Required -

1. Calculate the cost of goods sold under the FIFO, LIFO, and Weighted Average methods.

2. Calculate cost of goods sold using the Specific Identification method. Assume the March 9 sale consisted of 40 units form beginning inventory and 160 units from the March 5 purchase. Assume the March 29 sale consisted of 20 units from the March 18 purchase and 55 units from the March 25 purchase.

3. Compute the gross profit earned under each of the four inventory valuation methods.

If a business is not able to use the specific identification method for valuation of inventory, which alternate method is the most fair?

Reference no: EM132709159

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Calculate the cost of goods sold under the fifo

Reference no: EM132709159

Reference no: EM132709159

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