You are provided with the following information for Najera Inc. for the month ended June 30, 2019. Najera uses the periodic method for inventory.
Date Description Quantity Unit Cost or Selling Price
June 1 Beginning inventory 40 $40
June 4 Purchase 135 44
June 10 Sale 110 70
June 11 Sale return 15 70
June 18 Purchase 55 46
June 18 Purchase return 10 46
June 25 Sale 65 75
June 28 Purchase 30 50
Calculate cost per unit. (Round answer to 2 decimal places, e.g. 5.25.)
Weighted-average cost per unit $ _______
Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round average-cost method answers to 2 decimal places, e.g. 1,250.25 and other answers to 0 decimal places, e.g. 1,250. Use weighted-average unit cost rounded to 2 decimal places for computations.)
LIFO FIFO Average-Cost
The ending inventory $ _____ $ _____ $ _____
The cost of goods sold $ _____ $ _____ $_____
Gross profit $ _____ $ _____ $_____
Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 1 decimal place, e.g. 51.2%.)
LIFO FIFO Average-Cost
Gross Profit Rate _____ % _____ % _________ %
Compare the results for the three cost flow assumptions and answer the following questions.
In this period of rising prices, LIFO gives the ______ cost of goods sold and the _____ gross profit. FIFO gives the _____ cost of goods sold and the _____ gross profit.