Question

Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.

Answer 1

Step-by-step explanation:

The solution can be made in tabular form as given below for better comprehension. This easily calculates gross profit for each of the four costing methods.

Particulars FIFO LIFO Avg cost Spec. ID

Sales 50900 50900 50900 50900

Cost of goods sold 31800 32920 32248 32540

Gross Profit 19100 17980 18652 18360