Question

Calcuator The Boxwood Company sells blankets for $39 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost 33 $18 13 $20 May 3 10 17 20 23 30 Purchase Sale Purchase Sale Sale Purchase 25 23 2 29 $21 Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method Ca. $38 b. $360 Oc. $40 d. $420

Answer 1

Answer= a. $38 Perpetual First In First out Method Date Goods Purchases Cost of goods Sold Inventory Balance # of Units Cost per Unit Goods Purchased # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance May 31 33 S 18.00 S 594.00 33 $ 18.00 S 594.00 May. 10 13 S 18.00 S 234.00 20 S 18.00 S 360.00 May. 17 25 S 20.00 S 500.00 20 S 18.00 S 360.00 25 $ 20.00 S 500.00 May 20 20 S 18.00 S 360.00 22 S 20.00 S 440.00 3 $ 20.00 S 60.00 May. 23 2 S 20.00 S 40.00 20 S 20.00 S 400.00 May. 30 29 S 21.00 S 609.00 20 $ 29 S 491 20.00 21.00 $ S $ 400.00 609.00 1,009.00 694.00 Sales on May 23 transaction=2*39 = $78 Gross Profit = $78-$40 = $38