Question

Required information Exercise 6-4A Calculate Inventory amounts when costs are rising (L06-3) The following information applies to the questions displayed below. During the year, TRC Corporation has the following inventory transactions. Number of Units Unit Cost $43 Date Transaction Jan. 1 Beginning inventory Apr. 7 Purchase Jul.16 Purchase Oct. 6 Purchase 131 201 111 Total Cost 2,193 5.995 9,648 5,439 $23,175 For the entire year, the company sells 431 units of inventory for $61 each. Exercise 6-4A Part 1 Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Cost of Cost # of units cost per unit of units per unit Goods Available for Sale Goods # of units Cost Ending per unit Inventory Sold Beginning Inventory Purchases: Apr. 7 Jul. 16 Oct.6 Total Sales revenue Gross profit

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

1 Answer 2 Cost of goods sold Cost of goods available for sale Ending Inventory 3 FIFO Cost of Cost per goods Cost per Cost of Cost per Ending #of units #of units #of units unit available unit goods sold Inventory unit for sale 4 Beginning 2193 51 43 2193 43 0 51 43 0 5 inventory 6 Purchases 7 Apr. 7 131 131 45 5895 45 5895 0 45 0 8 Jul. 16 201 48 9648 201 48 9648 0 48 0 9 Oct.6 111 49 5439 48 49 2352 63 49 3087 10 Total 494 23175 431 20088 63 3087 11 12 Sales Revenue 26291 13 Gross Profit 6203 14 15 Working Note 16 Sales Revenue unit sold* selling price 17431 61 18 $26291 = 19 20 Gross Profit = sales cost of goods sold 21 26291 - 20088 22 6203 23 st