Our Goal - Calculating Gross Profit under the Last-in, First-out cost flow assumption.
During the year, Demetria Wood Products had the following units of a particular kitchen cabinet available for sale:
Cost of Goods Available for Sale |
Date |
Units
|
Cost
Per Unit
|
Total
Cost
| | January 1 Inventory | 30 | $ 450 | $ 13,500 | | February 24 Purchase | 50 | $ 459 | 22,950 | | August 21 Purchase | 10 | $ 441 | 4,410 | | Available for Sale | 90 | | $ 40,860 |
Demetria uses the periodic system to track inventory. At the end of the year, the business had 25 of these cabinets on hand. |
| Assuming that the 65 cabinets that were sold generated $33,610 of revenue, what amount of gross profit will Demetria report under the last-in, first-out method? |
