Question

Show Attempt History Current Attempt in Progress Concord Furniture Ltd, uses a perpetual inventory system and has a beginning inventory, as at June 1, of 510 bookcases at a cost of $138 each. During June, the company had the following purchases and sales of bookcases: Purchases Sales Date Units Unit cost Units Unit price June 6 1,200 $140 10 960 1,860 - 141 1,560 - 212 26 980 - 142

Answer 1

			Date		Purchases			Sales
					Units	Unit cost $	Total cost $	Units	Unit price $	Total sale value $
			Opening Stock		510	138	70,380
			June	6	1,200	140	168,000			-
				10				960	207	198,720
				14	1,860	141	262,260
				16				1,560	212	330,720
				26	980	142	139,160
					4,550		639,800	Total sales value		529,440
			Average cost=	Total cost	639,800	140.62
				Total units purchased	4,550
			As the Method of inventory valuation is not mention in the question we have assumed that
			Cost of goods sold assuming FIFO Method
	Date		Sales			Units issued for sale/cost of goods sold
			Units	Unit price $	Total sale value $	Units	Unit cost $	Total cost $
	Opening Stock					510	138	70,380
	June	6			-	450	140	63,000
		10	960	207	198,720
		16	1,560	212	330,720
		6				750	140	105,000
		14				810	141	114,210
		Total units sold	2,520	Total sales value	529,440			352,590
	Gross Profit
	Total sales value			529,440
	Cost of goods sold			352,590
	Gross Profit			176,850
Gross Profit Margin=	Gross profit	176,850
	Sales	529,440
Gross Profit Margin=		33%
			Assuming average cost
	Cost of goods sold as per average cost of $ 142.62 per unit			=total units sold*142.62	=2520*142.62	=2520*142.62
	Cost of goods sold as per average cost of $ 142.62 per unit			359402.4
	Gross Profit
	Total sales value			529,440
	Cost of goods sold			359,402
	Gross Profit			170,038
Gross Profit Margin=	Gross profit	170,038
	Sales	529,440
Gross Profit Margin=		32%