Chapter 6: Reporting and Analyzing Inventory

Case Study: Crystal Inc.

You have the following information for Crystal Inc. for the month ended
May 31. Crystal uses a periodic method for inventory.

Unit Cost or
Date Description Units Selling Price
May 1 Beginning Inventory 40 $20
May 6 Purchase 110 23
May 7 Sale 90 32
Fachbereich Elektrische
May 15 Purchase 70 25 Energietechnik
May 18 Sale 40 37
Prof. Dr. Valerie Wulfhorst
May 24 Purchase 60 26
Betriebswirtschaftslehre,
May 30 Sale 80 38 insb. Controlling

Telefon
(a) Calculate (i) cost of goods sold, (ii) ending inventory, (iii) gross profit, 02921 378-451
and (iv) gross profit rate under each of the following methods. Telefax
(1) LIFO. 02921 378-409
(2) FIFO. E-Mail
v.wulfhorst@fh-swf.de
(3) Average-cost. (Round cost per unit to three decimal places.)

(b) Compare results for the three cost flow assumptions. Standort Soest
Lbecker Ring 2
59494 Soest

Fachhochschule
Sdwestfalen
Sitz: Iserlohn

Hagen
Iserlohn
Meschede
Soest

www.fh-swf.de

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