Question

The following are the transactions for the month of July. Unit Selling Price Unit Cost Sle July 1 July 13 July 25 July 31 Beginning Inventory Purchase Sold Ending Inventory Units 51 255 (100) 206 $16 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit. under FIFO. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places and your final answers to nearest whole dollar amount.) Answer is complete but not entirely correct. FIFO (Periodic) Units 51 Cost per Unit $ 10.00 Total 510 $ 255 $ 12.00 3.060 3,060 Beginning Inventory Purchases July 13 Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory Units from July 13 Purchase Total Cost of Goods Sold Ending Inventory 306 255 3,570.00 Ⓡ S 12.00 o 1,095,480 $ 2.472 FIFO (Periodic) Sales Cost of Goods Sold Gross Profit $ 1.600 1.200 $ 502

Answer 1

FIFO (Periodic)
	Units	Cost per Unit	Total
Beginning inventory	51	$10	$510
Purchases
July 13	255	$12	$3,060
Goods Available for Sale                        [$510 + $3,060]			$3,570
Cost of Goods Sold:
Units from Beginning Inventory	51	$10	$510
Units from July 13 Purchases	49	$12	$588
Total Cost of Goods Sold                   [$510 + $588]			$1,098
Ending Inventory                                     [$3,570 - $1,098]			$2,472
FIFO (Periodic)
Sales                          [Units sold x Unit selling price = 100 x $16]	$1,600
Cost of Goods Sold    [Calculated above]	$1,098
Gross Profit                [Sales - Cost of Goods Sold = $1,600 - $1,098]	$502