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Inventory Valuation Effie Company uses periodic inventory system. Details for the inventory account for the month of January, 2013, are as follows: ...

Question:

Inventory Valuation

Effie Company uses periodic inventory system. Details for the inventory account for the month of January, 2013, are as follows:

                                   Units                  Per unit price            Total

Balance, 1/1/13       200                       $5.00                       $1,000

 

1/15/13                     100                         $5.30                       $   530

 

1/28/13                     100                         $5.50                       $   550

 

An end of the month (1/31/2013) inventory showed that 140 units were on hand.

Answer each of the following questions and show your calculations.

1. How many units did the company sell during January, 2013?

2. If the company uses FIFO, what is the value of ending inventory?

3. If the company uses LIFO, what is the value of ending inventory?

4. If the company uses average cost, what is the value of ending inventory?

5. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?