You are provided with the following information for Perkins Inc

P6-5B You are provided with the following information for Perkins Inc. for the month ended October 31, 2017. Perkins uses a periodic method for inventory.                                                                                             Unit Cost or

Date          Description                                                Units       Selling Price

October  1    Beginning inventory          60                 $25

October  9    Purchase                         120                  26

October 11    Sale                                100                  35

October 17    Purchase                          70                  27

October 22    Sale                                 60                  40

October 25    Purchase                          80                  28

October 29    Sale                                110                  40


(a)(iii) Gross profit:

LIFO       $3,050

FIFO       $3,230

Average $3,141

 (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. (Round average cost per unit to 3 decimal places.)

(b) Compare results for the three cost flow assumptions.

Here’s the SOLUTION

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