Patti Devine owns Devine Decorating. One of her most popular items is the Remind-a-Chime digital clock. This programmable clock issues "voice-based" reminders of important events like birthdays, anniversaries, etc.
Following is the Remind-a-Clock inventory activity for January. The clocks on hand at January 1 had a unit cost of $140.
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Date
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Purchases
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Sales
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Units on Hand
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1-Jan
|
|
|
40
|
|
5-Jan
|
60 units @ $150 each
|
|
100
|
|
16-Jan
|
|
70 units @ $255 each
|
30
|
|
23-Jan
|
90 units @ $170 each
|
|
120
|
|
28-Jan
|
|
55 units @ $295 each
|
65
|
(a) If Devine uses the first-in, first-out (FIFO) inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit?
(b) If Devine uses the last-in, first-out (LIFO) inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit?
(c) If Devine uses the weighted-average inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit?