ompkins Company reports the following inventory record for November: INVENTORY Date Activity # of Units Cost/Unit November 1 Beginning balance 115 $16 November 4 Purchase 350 $17 November 7 Sale (@ $53 per unit) 240 November 13 Purchase 520 $19 November 22 Sale (@ $53 per unit) 510 Selling, administrative, and depreciation expenses for the month were $15,200. Tompkins's effective tax rate is 30 percent. Required: 1. Calculate the cost of ending inventory and the cost of goods sold under each of the following methods: FIFO, LIFO, Weighted Average 2-a. What is the gross profit percentage under the FIFO method? 2-b. What is net income under the LIFO method?
Tompkins Company reports the following inventory record for November:
| INVENTORY | ||||
| Date | Activity | # of Units | Cost/Unit | |
| November 1 | Beginning balance | 115 | $16 | |
| November 4 | Purchase | 350 | $17 | |
| November 7 | Sale (@ $53 per unit) | 240 |
||
| November 13 | Purchase | 520 | $19 | |
| November 22 | Sale (@ $53 per unit) | 510 |
Selling, administrative, and depreciation expenses for the month were $15,200. Tompkins's effective tax rate is 30 percent.
Required:
1. Calculate the cost of ending inventory and the cost of goods sold under each of the following methods: FIFO, LIFO, Weighted Average
2-a. What is the gross profit percentage under the FIFO method?
2-b. What is net income under the LIFO method?
3. Tompkins applied the lower of cost or market method to value its inventory for reporting purposes at the end of the month. Assuming Tompkins used the FIFO method and that inventory had a market replacement value of $17.60 per unit, what would Tompkins report on the balance sheet for inventory?
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