Harold Co. reported the following current-year purchases and sales data for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 170 units @ $12.80 = $ 2,176 Jan. 10 Sales 160 units @$42.80 Mar. 14 Purchase 320 units @ $17.80 = 5,696 Mar. 15 Sales 210 units @$42.80 July 30 Purchase 470 units @ $22.80 = 10,716 Oct. 5 Sales 230 units @$42.80 Oct. 26 Purchase 670 units @ $27.80 = 18,626 Totals 1,630 units $ 37,214 600 units Harold uses a perpetual inventory system.

Harold Co. reported the following current-year purchases and sales data for its only product.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Jan.

1

Beginning inventory

170

units

@ $12.80

=

$

2,176

Jan.

10

Sales

160

units

@$42.80

Mar.

14

Purchase

320

units

@ $17.80

=

5,696

Mar.

15

Sales

210

units

@$42.80

July

30

Purchase

470

units

@ $22.80

=

10,716

Oct.

5

Sales

230

units

@$42.80

Oct.

26

Purchase

670

units

@ $27.80

=

18,626

Totals

1,630

units

$

37,214

600

units

Harold uses a perpetual inventory system.
Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.

Compute the gross margin for FIFO method.

     Compute the gross margin for LIFO method.

Explanation:

FIFO Gross margin

Sales revenue (600 units sold × $42.80 selling price) = $25,680

   

LIFO Gross margin

Sales revenue (600 units sold × $42.80 selling price) = $25,680