You are provided with the following information for Web Inc. for the month ended June 30, 2010.
Web uses the periodic method for inventory.
|
Date
|
Description
|
Quantity
|
Unit Cost or
Selling Price
|
|
June 1
June 4
June 10
June 11
June 18
June 18
June 25
June 28
|
Beginning inventory
Purchase
Sale
Sale return
Purchase
Purchase return
Sale
Purchase
|
40
135
110
15
55
10
65
30
|
$ 40
44
70
70
46
46
75
50
|
Instructions
(a). Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods.
(1) LIFO (2) FIFO (3) Average cost.
(b). Compare results for the three cost flow assumptions.