Question

Question 11 Grouper Outdoor Stores Inc. uses a perpetual inventory system and has a beginning inventory, as at April 1, of 149 tents. This consists of 51 tents at a cost of $210 each and 98 tents at a cost of $225 each. During April, the company had the following purchases and sales of tents: Purchases Units Unit Cost Date Apr. 3 10 Sales Units Unit Price 79 $420 205 $272 261 420 307 289 200 420 X Your answer is incorrect. Try again. Determine the cost of goods sold and the cost of the ending inventory using FIFO. Cost of goods sold 46360 Cost of the ending inventory 130883 LINK TO TEXT LINK TO TEXT Your answer is incorrect. Try again. Calculate Grouper Outdoors's gross profit and gross profit margin for the month of April. (Round gross profit margin to 1 decimal place, e.g. 1.2 and gross profit to the nearest whole dollar, e.g. 5,275.) Gross profit 180140 Gross profit margin T 0.8 % LINK TO TEXT LINK TO TEXT

Answer 1

Answer

• Units sold = 79 + 261 + 200 = 540 units

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning units	51	$              210.00	$                      10,710.00	51	$             210.00	$               10,710.00	0	$              210.00	$                         -
Beginning units	98	$              225.00	$                      22,050.00	98	$             225.00	$               22,050.00	0	$              225.00	$                         -
Apr 10 Purchase	205	$              272.00	$                      55,760.00	205	$             272.00	$               55,760.00	0	$              272.00	$                         -
Apr 24 Purchase	307	$              289.00	$                      88,723.00	186	$             289.00	$               53,754.00	121	$              289.00	$          34,969.00
TOTAL	661		$                    177,243.00	540		$            142,274.00	121		$          34,969.00

• Cost of Goods Sold = $ 142274
• Ending Inventory = $ 34969
• Gross Profit and Gross Profit margin

	FIFO
Sales Revenue [540 units x $ 420]	$ 226,800.00
(-) Cost of Goods Sold (as calculated above)	$ 142,274.00
Gross Profit	$    84,526.00
Gross profit margin [$84526 / 226800]	37.27%