Sandy Alomar Corp., Prepare two schedules for inventory costs under LIFO and FIFO
Sandy Alomar Corp., Prepare two schedules for inventory costs under LIFO and FIFO
You are vice-president of finance of Sandy Alomar Corp., a retail company that prepared 2 different schedules of gross margin for the first quarter ended March 31, 2007. These schedules appear below:
Sales ($5 per unit) cost of goods sold gross margin
Schedule 1 $150,000 124,900 25,100
Schedule 2 150,000 129,400 20,600
The computation of cost of goods sold in each schedule is based on the following data.
Units Cost per unit Total cost
Beg. Inventory, Jan 1 10,000 $4.00 $40,000
Purchase, Jan 10 8,000 4.20 �