During the year, TRC Corporation has the following inventory transactions.
Date Transaction Number of Unit Total
Units Cost Cost
January 1 Beginning inventory 40 \$32 \$1,280
April 7 Purchase 120 34 4,080
July 16 Purchase 190 37 7,030
October 6 Purchase 100 38 3,800
450 \$16,190
For the entire year, the company sells 400 units of inventory for \$50 each.
Required:
1-a & b. Using FIFO, calculate ending inventory and cost of goods sold.
1-c & d. Using FIFO, calculate sales revenue and gross profit.
2-a & b. Using LIFO, calculate ending inventory and cost of goods sold.
2-c & d. Using LIFO, calculate sales revenue and gross profit.
3-a & b. Using weighted-average cost, calculate ending inventory and cost of goods sold.
3-c & d. Using weighted-average cost, calculate sales revenue and gross profit.
4. Determine which method will result in higher profitability when inventory costs are rising.
Complete this question by entering your answers in the tabs below.
Req 1a and b Req 1c and d Req 2a and b Req 2c and d Req 3a and b Req 3c and d Req 4
Using FIFO, calculate ending inventory and cost of goods sold.
FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory
Number Cost per Cost of Number Cost per Cost of Number Cost Ending
of units unit Goods of units unit Goods of units per unit Inventory
Available Sold
for Sale
Beginning Inventory 40 \$ 32 \$ 1,280 \$ 32
Purchases:
April 07 120 \$ 34 4,080 \$ 34
July 16 190 \$ 37 7,030
October 06 100 \$ 38 3,800
Total 450 \$ 16,190
