Problem: You have the following information for McHugh Inc. for the month ended October 31, 2010. McHugh uses a periodic method for inventory.
Unit Cost or
Date Description Units Selling Price
Oct. 1 Beginning inventory 60 $25
Oct. 9 Purchase 120 26
Oct. 11 Sale 100 35
Oct. 17 Purchase 90 27
Oct. 22 Sale 60 40
Oct. 25 Purchase 80 29
Oct. 29 Sale 110 40
Calculate ending inventory, cost of goods sold, gross profit, and gross profit rate under each of the following methods. (When calculating average cost per unit round to 3 decimal places, e.g. 2.540. Round gross profit rate to 1 decimal place, e.g. 50.5 and all other answers to 0 decimal places, e.g. 5,550.)
(1) LIFO.
(2) FIFO.
(3) Average cost.
LIFO FIFO Average Cost
Ending inventory $ ______ $ ______ $ ______
Cost of goods sold $ ______ $ ______ $ ______
Gross profit $ ______ $ ______ $ ______
Gross profit rate ______% ______% ______%