Allocating product costs between cost of goods sold and ending inventory: intermittent purchases and sales of merchandise
The Fireplace Shop had the following sales and purchase transactions during 2012. Beginning inventory consisted of 60 items at $350 each. The company uses the FIFO cost flow assumption, and keeps perpetual inventory records.
Date | Transaction | Description |
Mar. 5 | Purchased | 50 items @ $370 |
Apr. 10 | Sold | 40 items @ $450 |
June 19 | Sold | 50 items @ $450 |
Sept. 16 | Purchased | 50 items @ $390 |
Nov. 28 | Sold | 35 items @ $470 |
Required
a. Record the inventory transactions in general journal format.
b. Calculate the gross margin The Fireplace Shop would report on the 2012 income statement.
c. Determine the ending inventory balance The Fireplace Shop would report on the December 31, 2012, balance sheet.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.