Question

Assume that RB Tire Store completed the following perpetual inventory transactions for a line of tires: A (Click the icon to view the transactions.) Read the requirements. Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transactio Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Purchases Unit Cost Cost Total Cost Cost of Goods Sold Unit Total Quantity Cost Cost Inventory on Hand Unit Total | Quantity Cost Cost Quantity * More Info Date Dec. 1 Dec. 1 Beginning merchandise inventory 11 Purchase 23 Sale 26 Purchase 29 Sale 20 tires @ $ 8 tires @ $ 15 tires @ $ 13 tires @ $ 15 tires @ $ 66 each 73 each 87 each 84 each 87 each Print Done Cotar number in the ait field and thanalial boole Anomor

Answer 1

Gross Profit S 538 First In First out Method Date Purchases Cost of goods Sold Inventory on Hand Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost| Dec. 1 20 S 66 $ 1,320 8 $ 73 $ 584 20 S 66 $ 1,320 8 $ 73 $ 584 15 S 66 $ 990 5 $ 66 $ 330 8 $ 73 $ 584 26 13 S 84 $ 1,092 5 $ 66 $ 330 8 $ 73 $ 584 13 $ 84 $ 1,092 5 $ 66 $ 330 11 $ 84 $ 924 8 $ 73 $ 584 21 $ 84 $ 168 Total $ 2,072 11 S 924 30 Sales = 15*$87 +15*$87 = $2,610 Gross Profit = Sales - Cost of Goods Sold = $2,610-$2,072 = $538