Harry’s House of Fashions uses a perpetual inventory system. It entered into the following calendar-year 2013 purchases and sales transactions:

Jan. 1 Beginning inventory 60 units @ $40/unit

April 1 Purchase 75 units @ $48/unit

April 5 Sales 50 units @ $80/unit

July 7 Purchase 30 units @ $42/unit

Aug.12 Purchase 40 units @ $50/unit

Sept. 2 Sales 65 units @ $80/unit

Totals 205units 115 units


1. Compute cost of goods available for sale and the number of units available for sale.

2. Compute the number of units remaining in ending inventory.

3. Compute the cost of goods sold for the year and the cost assigned to ending inventory using (a) FIFO, (b) LIFO, and

(c) weighted average – round per unit cost to tenth of a cent and inventory balances to the dollar.

4. Compute the gross profit earned by the company for each of the costing methods in part 3.


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