Part I Answer the following questions based on the information below: Beginning Inventory 1,000 units

Part I    Answer the following questions based on the information below:

 

Beginning Inventory     1,000 units

Purchases       1,500 units

Units available for sale    2,500 units

Units sold         2,200 units

Ending inventory   300 units

 

Inventory Purchases History:

 

Beginning Inventory value 1,000 units @ $2.00

March 1 Purchase 700 units @ $4.00

March 12 Purchase 600 units @ $6.00

March 23 Purchase 200 units @ $8.00

  

1. Calculate the cost of goods sold under the FIFO inventory method. (12 points)

2. Calculate the ending inventory monetary value under the FIFO inventory method. (12 points)

3. Calculate the cost of goods sold under the LIFO inventory method. (12 points)

4. Calculate the ending inventory monetary value under the LIFO inventory method. (12 points)

5. Calculate the cost of goods sold under the Average Cost inventory method. Round to the nearest cent. (12 points)

6. Calculate the ending inventory monetary value under the Average Cost inventory method. Round to the nearest cent. (12 points)

  

Part II    Answer the questions below based on the following information.

 

Sales Discounts    $ 25,000

Operating Expenses    $ 76,000

Sales Returns and Allowances    $ 10,000

Total Sales    $500,000

Cost of Goods Sold   $250,000

  

1. Calculate net sales. (9 points)

2. Calculate gross profit. (9 points)

3. Calculate net income. (10 points)