Question

Athletic World began January with merchandise inventory of 72 crates of vitamins that cost a total of $3,600. During the month, Athletic World purchased and sold merchandise on account as follows: BE: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Purchases Cost of Goods Sold Inventory on Hand Data Table Unit Unit Total Unit Cost Total Cost Total Cost Quantity Quantity Cost Quantity Cost Cost Date Jan. 1 Jan. 5 Purchase 13 Sale 18 Purchase 26 Sale 120 crates @ 130 crates @ 124 crates @ 130 crates @ $ $ $ $ 78 each 98 each 90 each 104 each Print Done Totals Enter any number in the edit fields and then click Check Answer.

Answer 1

	Purchases			Cost of goods sold			Ending inventory
Date	Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost	Unit	Unit Cost	Total Cost
Jan 1							72	50	3600
Jan 5	120	78	9360				72 120	50 78	3600 9360
Jan 13				72 58	50 78	3600 4524	62	78	4836
Jan 18	124	90	11160				62 124	78 90	4836 11160
Jan 26				62 68	78 90	4836 6120	56	90	5040
Jan 31	244		20520	260		19080	56		5040

Gross profit = 26260-19080 = 7180