Question

Rock Slide is a distributor that assembles power units. Using the material presented in Schedules A and Schedule B:

(1) Determine Rock Slide’s cost of goods sold and the ending inventory using the inventory costing methods of FIFO, LIFO, and Weighted Averages;

(2) Determine Rock Slide’s gross profit (margin) using the inventory costing methods of

FIFO, LIFO and Weighted Averages;

S c h e d u l e A A s s e m b l y o f P o w e r U n i t s Rock Slide

Assembly Activity	Units	Cost/Unit	Total Cost
Beginning Inventory 1/1/12	70	$105	$7,350
Assembly Units Placed Into Inventory
2/15/12	85	$110	$9,350
4/20/12	90	$112	$10,080
9/18/12	65	$112	$7,280
11/16/12	110	$112	$12,320
12/20/12	80	$120	$9,600
Total Assembled Units Available for Sale- 2012	500		$55,980

Schedule B

Sales of Power Units Rock Slide

Sales Activity	Units	Unit Sales Price	Total Sales
1/15/12	60	$145	$8,700
3/20/12	80	$150	$12,000
5/2/12	100	$150	$15,000
10/8/12	60	$150	$9,000
11/30/12	110	$150	$16,500
12/28/12	30	$175	$5,250
Total 2012 Sales	440		$66,450