Sandhill Co had a beginning inventory balance on luly 1 of 4

Sandhill Co. had a beginning inventory balance on luly 1 of 410 units at a cost of $3.00 each. During the month, the following inventory transactions took place: Sales Cost per unit $3.10 3.50 3.90 Date July 2 11 28 Units 300 1,030 360 Price per unit $6.10 6.10 6.60 Date Units July 10 1,280 13 27 560 Calculate the cost of goods available for sale and the number of units of ending inventory. Cost of goods available for sale Number of units of ending inventory units sHow LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Assume Sandhil uses FIFO periodic. Calculate the cost of ending inventory, cost of the goods sold, and gross profit. (Round answers to 0 decimal places, e.g. 5,275.) Ending inventory Cost of goods solds Gross profit

Solution

Cost of Goods Available for Sale Date Explanation Units Unit Cost Total Cost 1-Jul Beg. Inventory                 410                 3.00      1,230.00 10-Jul Purchases             1,280                 3.10      3,968.00 13-Jul Purchases                 680                 3.50      2,380.00 27-Jul Purchases                 560                 3.90      2,184.00 Total             2,930      9,762.00 Sales: Date Explanation Units Unit Cost Total Cost 2-Jul                 300                 6.10            1,830 11-Jul             1,030                 6.10            6,283 28-Jul                 360                 6.60            2,376 Total             1,690          10,489 Ending Inventory (In Units) = 2,930 Units - 1,690 Units Ending Inventory (In Units) = 1,240 Units FIFO Method - Periodic Value of Ending Inventory Date Units Unit Cost Total Cost 27-Jul                          560                3.90              2,184 13-Jul                          680                3.50              2,380 Total                       1,240              4,564 Cost of Goods Sold: Cost of Goods Available for Sale              9,762 Less: Ending Inventory              4,564 Cost of Goods Sold              5,198 Calculation of Gross Profit Sales            10,489 Less: Cost of Goods Sold              5,198 Gross Profit              5,291 FIFO Periodic Inventory Journal Entry Date Particulars Dr. Amt. Cr. Amt. 10-Jul Purchases    3,968.00    Cash    3,968.00 (To record the purchase) 11-Jul Cash    6,283.00    Sales    6,283.00 (To record the sales) FIFO Perpetual Inventory Journal Entry Date Particulars Dr. Amt. Cr. Amt. 10-Jul Inventory    3,968.00    Cash    3,968.00 (To record the purchase) 11-Jul Cash    6,283.00    Sales    6,283.00 (To record the sales) 11-Jul Cost of Goods Sold       900.00    Inventory       900.00 (To record the cost of goods sold)