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Ruston Company had 600 units in inventory at the beginning of November, each assigned a $10 unit cost. Ruston also made the following purchases of inventory and sales of inventory during November.

Ruston Company had 600 units in inventory at the beginning of November, each assigned a $10 unit cost. Ruston also made the following purchases of inventory and sales of inventory during November.

Purchases during November

Nov 6 175 units at $11

Nov 14 250 units at $12

Nov 16 500 units at $13

Nov 28 325 units at $14

Sales in November

Nov 4 375 units sold for $20

Nov 8 200 units sold for $20

Nov 17 400 units sold for $20

Nov 24 320 units sold for $20

    Purchase     Sales    
DATE Activity Number Units Unit Cost Total Purchase Number Units Unit Sales Price Total Sales
11-1 Beginning Inventory 600 $10 $6,000 --   --
11-4 SALE --   -- 375 $20 $7,500
11-6 Purchase 175 $11 $1,925 --   --
11-8 SALE --   -- 200 $20 $4,000
11-14 Purchase 250 $12 $3,000 --   --
11-16 Purchase 500 $13 $6,500 --   --
11-17 SALE --   -- 400 $20 $8,000
11-24 SALE --   -- 320 $20 $6,400
11-28 Purchase 325 $14 $4,550 --   --

Instructions

Compute the April 30 ending inventory and April cost of goods sold as well as the amount of reported gross profit under the different cost flow assumptions and inventory tracking systems. Please provide calcuations.

METHOD ENDING INVENTORY COST OF GOODS SOLD GROSS PROFIT
(a) Average cost, periodic      
(b) Average cost, perpetual      
(c) FIFO, periodic      
(d) FIFO, perpetual      
(e) LIFO, periodic      
(f) LIFO, perpetual    

Jun 20 2021 View more View Less

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