Irom the January 5 purchase are on nanu. E8.11 (LO 3) (Compute FIFO and Average-Cost-Periodic)...
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Irom the January 5 purchase are on nanu. E8.11 (LO 3) (Compute FIFO and Average-Cost-Periodic) The following information is related to radios for the Couples Company for the month of July. Units Units Units Selling Date Transaction In Cost Total Sold Price Total July Balance 100 $4.10 $ 410 1 800 4.30 3,440 300 $7.00 $ 2,100 7:30 2,190 300 400 4.51 1,804 200 7.40 1,480 6 Purchase 7 Sale 10 Sale 12 Purchase 15 Sale 18 Purchase 22 Sale 25 Purchase 30 Sale Totals 300 4.60 1,380 400 7.40 2,960 500 4.58 2,290 200 7.50 1,500 $10,230 2,100 $9,324 1,400 Instructions a. Assuming that the periodic inventory method is used, compute the inventory cost at July 31 under each of the following cost flow assumptions. (Ignore taxes.) 1. FIFO. 2. Weighted average. b. Answer the following questions. 1. Which of the methods used above will yield the highest figure for gross profit for the income statement? Explain why. 2. Which of the methods used above will yield the highest figure for ending inventory for the statement of financial position? Explain why
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