ABC Company employs a periodic inventory system and sells its inventory to customers for $27 per unit. ABC Company had the following inventory information available for the month of May: May 1 Beginning inventory 2,400 units @ $14 cost per unit May 8 Sold 1,000 units May 13 Purchased 1,300 units @ $17 cost per unit May 18 Sold 1,200 units May 21 Purchased 1,100 units @ $11 cost per unit May 28 Sold 300 units May 30 Purchased 700 units @ $10 cost per unit During May, ABC Company reported operating expenses of $14,500 and had an income tax rate of 43%. Calculate the amount of gross profit shown on ABC Company's income statement for May using the weighted average method.
Units | Unit cost | Total cost | |
May 1 | 2400 | 14 | 33600 |
May 13 | 1300 | 17 | 22100 |
May 21 | 1100 | 11 | 12100 |
May 30 | 700 | 10 | 7000 |
Total | 5500 | 74800 | |
Average cost per unit | 13.60 | =74800/5500 | |
Total units sold | 2500 | =1000+1200+300 | |
Sales Revenue | 67500 | =2500*27 | |
Less: Cost of goods sold | 34000 | =2500*13.60 | |
Gross Profit | 33500 |
ABC Company employs a periodic inventory system and sells its inventory to customers for $27 per...
ABC Company employs a periodic inventory system and sells its inventory to customers for $27 per unit. ABC Company had the following inventory information available for the month of May: May 1 Beginning inventory 2,400 units @ $14 cost per unit May 8 Sold 1,000 units May 13 Purchased 1,300 units @ $17 cost per unit May 18 Sold 1,200 units May 21 Purchased 1,100 units @ $11 cost per unit May 28 Sold 300 units May 30 Purchased 700...
ABC Company employs a periodic inventory system and sells its inventory to customers for $27 per unit. ABC Company had the following inventory information available for the month of May: May 1 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 2,400 units @ $14 cost per unit Sold 1,000 units Purchased 1,300 units @ $17 cost per unit Sold 1,200 units Purchased 1,100 units @ $11 cost per unit Sold 300 units Purchased 700...
ABC Company employs a periodic inventory system and sells its inventory to customers for $27 per unit. ABC Company had the following inventory information available for the month of May: May 1 Beginning inventory 2,400 units @ $14 cost per unit May 8 Sold 1,000 units May 13 Purchased 1,300 units @ $17 cost per unit May 18 Sold 1,200 units May 21 Purchased 1,100 units @ $11 cost per unit May 28 Sold 300 units May 30 Purchased 700...
ABC Company employs a periodic inventory system and sells its inventory to customers for $27 per unit. ABC Company had the following inventory information available for the month of May: May 1 May 8 May 13 May 18 Beginning inventory 2,400 units @ $14 cost per unit Sold 1,000 units Purchased 1,300 units @ $17 cost per unit Sold 1,200 units Purchased 1,100 units @ $11 cost per unit Sold 300 units Purchased 700 units @ $10 cost per unit...
ABC Company employs a periodic inventory system and sells its inventory to customers for $27 per unit. ABC Company had the following inventory information available for the month of May: May 1 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 2,400 units @ $14 cost per unit Sold 1,000 units Purchased 1,300 units @ $17 cost per unit Sold 1,200 units Purchased 1,100 units @ $11 cost per unit Sold 300 units Purchased 700...
ABC Company employs a periodic inventory system and sells its inventory to customers for $27 per unit. ABC Company had the following inventory information available for the month of May: May 1 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 2,400 units @ $14 cost per unit Sold 1,000 units Purchased 1,300 units @ $17 cost per unit Sold 1,200 units Purchased 1,100 units @ $11 cost per unit Sold 300 units Purchased 700...
ABC Company employs a periodic inventory system and sells its inventory to customers for $27 per unit. ABC Company had the following inventory information available for the month of May: May 1 Beginning inventory 2,400 units @ $14 cost per unit May 8 Sold 1,000 units May 13 Purchased 1,300 units @ $17 cost per unit May 18 Sold 1,200 units May 21 Purchased 1,100 units @ $11 cost per unit May 28 Sold 300 units May 30 Purchased 700...
ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 Beginning inventory 4,200 units @ $9 cost per unit May 6 Purchased 2,000 units @ $12 cost per unit May 8 Sold 3,000 units May 13 Purchased 4,000 units @ $8 cost per unit May 18 Sold 2,100 units May 21 Purchased 2,500 units @ $6 cost per unit...
ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 May 6 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 4,200 units @ $9 cost per unit Purchased 2,000 units @ $12 cost per unit Sold 3,000 units Purchased 4,000 units @ $8 cost per unit Sold 2,100 units Purchased 2,500 units @...
ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 May 6 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 4,200 units @ $9 cost per unit Purchased 2,000 units @ $12 cost per unit Sold 3,000 units Purchased 4,000 units @ $8 cost per unit Sold 2,100 units Purchased 2,500 units @...