Question: Refer to the data in Exercise. Assume that ending inventory is made up of 100 units from the March 14 purchase, 120 units from the July 30 purchase, and all 600 units from the October 26 purchase. Using the specific identification method, calculate (a) the cost of goods sold and (b) the gross profit.
Exercise: Harold Co. reported the following current-year purchases and sales data for its only product
Harold uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. Compute the gross margin for each method.