Question

Required information [The following information applies to the questions displayed below) During the year, TRC Corporation has the following inventory transactions. Date Transaction Beginning Number of Units 56 Unit Cost $48 Jan. 1 inventory Apr. 7 Purchase Jul.16 Purchase Oct. 6 Purchase 136 206 116 514 Total Cost $ 2,688 6,800 10,918 6,264 $26,670 For the entire year, the company sells 442 units of inventory for $66 each. Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

Answer 1

FIFO Cost of Goods Cost of Goods Ending Inventory Available for sale sold It of Cost Cost of us Cost Cost 4 of Cost Ending #ol COST COST 4Ok ICOS per 1 9oools units Per Available goods ity unit unit inventory for sale Isold Beginning Inventory Sual 2,688 56 $40 $2,688 0 Purchases o Apr. 7 Jul. 16 Oct. 6 Total 136 950 $ 6,800 136 $50 $6,800 206 $53 $10,918 206 $53 $10,918 116 $54 $6,264 44 $54 2,376 72 $54 $3,888 72 $3,888 514 $26,670 442 22,782 Sales revenue $ 29, 172 $ 6,390 Gross Profit

Calculation: Cost of goods Available for sale Beginning inventory = 56 X $48 2 $ 2,688 Purchases Ари, а 136 x 450 = $ 6,800 Jul 16 = 206 * $53 = $ 10,918 Oct. 6 - 116 * $ 54 = $ 6,264 Cost of Goods sold Beginning inventory = 564 $48 a $2,688. Purchases Apr. 7 - 1364 $50 = $6,800 Jul 16 = 206 x 853 = $ 10,918 Oct. 6 442 units - (56+ 136 + 206) = 442 units - 398 = 44 44 X $54 = $2,376

Ending Inventory (56 +136+ 206 +116) - 442 units = 514 - 442 = 72 Ending inventory = 72 x 854 = $3,888 sales revenue $66. = 442 units X - $29, 172 Gross goods a = profit sales revenue - Cost of $ 29, 172 - $ 22,782 $ 6,390 =