Question

Required information Exercise 6-4A Calculate inventory amounts when costs are rising (L06-3) [The following information applies to the questions displayed below.] During the year, TRC Corporation has the following inventory transactions. Date Transaction Jan. 1 Beginning inventory Apr. 7 Purchase Jul.16 Purchase Oct. 6 Purchase 127 Number of Units Unit Cost Total Cost 47 $ 39 $ 1,833 41 5,207 197 44 8,668 107 4,815 478 $20,523 45 For the entire year, the company sells 426 units of inventory for $57 each. Cuorein GAA De 1 S Next

Answer 1

FIFO	Cost of Goods Available for Sale	Cost of Goods Sold	Ending Inventory
	# of Units	Cost Per Unit	Cost of Goods Available for Sale	# of Units	Cost Per Unit	Cost of Goods Sold	# of Units	Cost Per Unit	Ending Inventory
Beginning Inventory	47	$39	$1,833	47	$39	$1,833	0
Purchases:
Apr. 7	127	$41	$5,207	127	$41	$5,207	0
Jul. 16	197	$44	$8,668	197	$44	$8,668	0
Oct. 6	107	$45	$4,815	55	$45	$2,475	52	$45	$2,340
Total	478		$20,523	426		$18,183	52	$45	$2,340

FIFO Method:

Particulars	No. of Units
Total Sales	426
Less: Sold from Beginning Inventory	47
Balance	379
Less: Sold from Purchase of Apr. 7	127
Balance	252
Less: Sold from Purchase of Jul. 16	197
Balance	55
Less: Sold from Purchase of Oct.6	55

Particulars	Calculations	Amount
Sales Revenue	426 Units * $57 Per Unit	$24,282
Less: Cost of Goods Sold		$18,183
Gross Profit		$6,099