Question

Fatima Co. incurred the following transactions during the month of December 2019. December 1: Beginning Inventory (400 units @ 10 per unit) December 8: Purchased 90 units @ 11 per unit December 12: Sold 430 units @ 20 per unit December 15 Purchased 100 units @ 9 per unit December 16 Purchased 50 units @ 9.50 per unit December 22: Sold 90 units @ 21 per unit December 25 Sold 60 units @ 21.50 per unit December 28: Sold 10 units @ 22.00 per unit December 30: Purchased 90 units @10.50 per unit December 31: Sold 60 units @ 22.50 per unit Required: You have to use Average and FIFO methods and calculate the following: i. Calculate cost of ending inventory on December 31, 2019 ii. Calculate cost of goods sold for the period ending on December 31", 2019 iii.Calculate gross profit for the period ending on December 31", 2019.

both Average and FIFO method wanted

Answer 1

Ansuer sales(430 x $20) t (90x 431) + (60 x $31-50) + ((0x 422)+(6ox. 22 50) 13390 fepetual nuenage metted Ending nventny Cost of goody soid Aurchaie To tal Unt cost Unit To tal Unut cos Units Total oate Unuts UnitHt Jy000 400 Dec yooo 400 990 90 Dec s 10-1837 990 490 $10.1837 $4379 0-1834 60 430 oec (2 0-LE31 oo Dec Is loo 9-44375 bo 160 9.50 pec lb 50 SD 216 9.451 q.usH 9-usH Dec 22 135 ao 60 .457) Dec 561 S68 9.454 9.u5H 473 pec 28 9.4s71 43 10.90 bec 30 S0 o1286 1418 10.1286 60 10.1286 80 Dec3 BID 650 6500 Tote Gross pokt ales- cost of goocs sold 13310 6500 Gross profte

a FIFO mettod-- Endring mventory Cost of goads sold Purchaies To tal Oata Onits Unit-cost Total Unut Cost Unils Toter Unit cost Unuts guooo Dec Dec 8 yoo এ११० 990 6 60 чро yро 60 pec 12 330 30 11 660 q00 bo Dec r loo g00 (00 60 9.S0 bec 16 900 9.50 SD Sth 660 630 Dec 22 30 475 SO 270 S4O pec 25 SD Sth 9.0 Dec 28 SD 10-SD to.So 945 OPC30 90 9.D 5D Dec 31 0 JD 46470 To tal sales- os of goods sold Gross prfit 46470 $1335D Gnoss prfit 6&so