Perpetual: Inventory costing methods-FIFO and LIFO

Date, activities, units acquired at cost, units sold at retail

Jan. 1, Beginning inventory, 155 units @ 12.20= 1,891

Jan 10, sales, (units sold at retail 145 units @ 42.20)

March 14, purchase, 305 units @ 17.20=5,246

March 15, sales, (units sold at retail 195 units @ 42.20)

July 30, purchase, 455 units @ 22.20=10,101

Oct 5, sales, (units sold at retail 245 units @ 42.20)

Oct 26, purchases, 655 units @ 27.20=17816

Totalys 1,570 units, 35,054, 585 units sold at retail

1. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO and FIFO

2. compute the gross margin for fifo method

sales revenue

cost of goods sld

gross margin

3. compute the gross margin for lifo method

sales revenue

cost of goods sold

gross margin