Question :
47) Inventory data for Daisy Cutters, Inc., provided below. Sales : 1253242
47) Inventory data for Daisy Cutters, Inc., are provided below. Sales for the month were 500 units sold for $30 each. The company maintains a periodic inventory system.
Date
Number of Units
Unit Cost
Total Cost
May 1
Beginning inventory
100
$14.85
$1,485.00
May 3
Purchase
150
$15.23
$2,284.50
May 19
Purchases
200
$16.00
$3,200.00
May 28
Purchases
175
$16.20
$2,835.00
Required:
1. Determine the gross profit for the month assuming the company uses the FIFO cost flow method.
2. Determine the gross profit for the month assuming the company uses the LIFO cost flow method.
3. Which method results in a higher cost of goods sold? Explain why.
48) On June 1, Treble Clef, Inc. had one piano in inventory. During June, five additional pianos were purchased–two on June 8, two on June 12, and one on June 25. The company sold three of the pianos on June 13, another one on June 19, and one more on June 28.
Part A: Using the LIFO perpetual cost flow method, put the number of pianos in the appropriate column(s) to show:
June 1 Inventory
June 8 Purchase
June 12 Purchase
June 25 Purchase
1
Which 3 pianos were recorded as cost of goods sold on June 13?
2
Which one was recorded as cost of goods sold on June 19?
3
Which one was recorded as cost of goods sold on June 28?
4
Which piano will be included in Starnes’ inventory cost calculation at the end of June?
Part B: Using the FIFO perpetual cost flow method, put the number of pianos in the appropriate column(s) to show:
June 1 Inventory
June 8 Purchase
June 12 Purchase
June 25 Purchase
1
Which 3 pianos were recorded as cost of goods sold on June 13?
2
Which one was recorded as cost of goods sold on June 19?
3
Which one was recorded as cost of goods sold on June 28?
4
Which piano will be included in Starnes’ inventory cost calculation at the end at June 30?
49) On May 1, Starnes TV had two TV sets in inventory. During May, six additional TV sets were purchased–two on May 10, one on May 16, and three on May 24. The company sold two of the TV sets on May 13, another one on May 18, and two more on May 27.
Part A: Using the FIFO perpetual cost flow method, fill in the number of TV sets in the appropriate column:
May 1 Inventory
May 10 Purchase
May 16 Purchase
May 24 Purchase
1
Which two TV sets were recorded as cost of goods sold on May 13?
2
Which one was recorded as cost of goods sold on May 18?
3
Which two TV sets were recorded as cost of goods sold on May 27?
4
Which three TV sets will be included in Starnes’ inventory cost calculation at the end of May?
Part B: Using the LIFO perpetual cost flow method, fill in the number of TV sets in the appropriate column:
May 1 Inventory
May 10 Purchase
May 16 Purchase
May 24 Purchase
1
Which two TV sets were recorded as cost of goods sold on May 13?
2
Which one was recorded as cost of goods sold on May 18?
3
Which two TV sets were recorded as cost of goods sold on May 27?
4
Which three TV sets will be included in Starnes’ inventory cost calculation at the end of May?
or Waypoint 
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