Answer:
a. Ending inventory = $162, Cost of Sales = $593, Gross Profit = $478
b. Ending inventory = $227, Cost of Sales = $528, Gross Profit = $543
c. Ending inventory = $492.30, Cost of Sales = $557.94 , Gross Profit = $513.06
d. FIFO
Explanation:
FIFO
Ending inventory = 18 units × $9 = $162
Total = $162
Cost of Sales = 11 units × $13 = $143
16 units × $12= $192
21 units × $11 = $231
3 units × $9 = $27
Total = $593
Gross Profit = Sales less Cost of Sales
= (51 units × $21) - $593
= $1,071 - $593
= $478
LIFO
Ending inventory = 11 units × $13 = $143
7 units × $12 = $84
Total = $227
Cost of Sales = 9 units × $12 = $108
21 units × $11 = $231
21 units × $9 = $189
Total = $528
Gross Profit = Sales less Cost of Sales
= (51 units × $21) - $528
= $1,071 - $528
= $543
Weighted-average cost
First determine the average cost.
Average cost = Total Cost / Total units
= $ 755 / 69
= $10.94
Ending inventory = Units Remaining × Average Price
= 45 units × $10.94
= $492.30
Cost of Sales = Units Sold × Average Cost
= 51 units × $10.94
= $557.94
Gross Profit = Sales less Cost of Sales
= (51 units × $21) - $557.94
= $1,071.00 - $557.94
= $513.06
