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 | 10 | $ 270 | $ 2,700 | | February 24 Purchase | 50 | $ 315 | 15,750 | | August 21 Purchase | 30 | $ 261 | 7,830 | | Available for Sale | 90 | | $ 26,280 |
Demetria uses the periodic system to track inventory. At the end of the year, the business had 24 of these cabinets on hand. |
| Assuming that the 66 cabinets that were sold generated $26,016 of revenue, what amount of gross profit will Demetria report under the last-in, first-out method? |
