Reference no: EM132475010

You have the following information for Van Gogh Inc. for the month ended October 31, 2017. Van Gogh uses a periodic method for inventory.

Date                    Description                     Units                        Unit Cost or Selling Price

Oct. 1          Beginning inventory             60                                  $24

Oct. 9                 Purchase                    120                                26

Oct. 11                   Sale                        100                                35

Oct. 17                   Purchase                   100                                27

Oct. 22                         Sale                     60                                 40

Oct. 25                            Purchase             70                                  29

Oct. 29                           Sale                     110                                 40

Instructions

Question 1: (a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods.

LIFO.
FIFO.
Average-cost. (Round cost per unit to three decimal places.)

(a) Gross profit:

LIFO       $2,970

FIFO        $3,310

Average   $3,133