Question

Question 5 3 pts 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 cos t per unit Sold 3.880 units Purchased 4.000 units 58 cost Sold 2,100 units Purchased 2.500 units e36 cost per Sold 2,200 units Purchased 2,300 units 517 cost per $26.100 and they had a ABC Company reported operating expenses of tax rate of 43% Calculate the anount of gross profit show for May using the weighted average nethod.

Answer 1

5.

	W. Avg	Cost of goods available for sale			Cost of Goods Sold			Ending Balance
Date	Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
May-01	Beginning Inventory	4200	$                  9.00	$      37,800.00				4200	$         9.00	$     37,800.00
May-06	Purchase	2000	$               12.00	$      24,000.00				4200	$         9.00	$     37,800.00
								2000	$      12.00	$     24,000.00
								6200	$         9.97	$     61,800.00
May-08	Sales				3000	$             9.97	$       29,903.23	3200	$         9.97	$     31,896.77
May-13	Purchase	4000	$                  8.00	$      32,000.00				3200	$         9.97	$     31,896.77
								4000	$         8.00	$     32,000.00
								7200	$         8.87	$     63,896.77
May-18	Sales				2100	$             8.87	$       18,636.56	5100	$         8.87	$     45,260.21
May-21	Purchase	2500	$                  6.00	$      15,000.00				5100	$         8.87	$     45,260.21
								2500	$         6.00	$     15,000.00
								7600	$         7.93	$     60,260.21
May-28	Sales				2200	$             7.93	$       17,443.74	5400	$         7.93	$     42,816.46
May-30	Purchase	2300	$               17.00	$      39,100.00				5400	$         7.93	$     42,816.46
								2300	$      17.00	$     39,100.00
								7700	$      10.64	$     81,916.46
	Total	15000		$ 1,47,900.00	7300		$      65,983.54	7700		$     81,916.46

Cost of Goods SOld = $65983.54 or $65984
Sales Revenue = 7300 x $23 = $167900

Gross Profit = Sales Revenue - Cost of Goods Sold
= $167900-65983.54 = $101916.46 or $101916