During the year TRC Corporation has the following inventory

During the year, TRC Corporation has the following inventory transactions Number of Units 45 125 195 105 Unit Date Jan. 1 Beginning inventory Apr. 7 Purchase Jul. 16 Purchase Oct 6 Purchase Cost Total Cost $37 1,665 4,875 8,190 4,515 39 42 43 470 S 19,245 For the entire year, the company sells 414 units of inventory for $55 each. References Section Break Exercise 6-4 Calculate inventory when costs are rising (LO6-3) 10. 2.75 points Exercise 6-4 Part1 Required 1. Using FIFo, calculate ending inventory, cost of goods sold, sales revenue, and gross profit

Solution

1) Units available for sale = 470 units

Cost of goods available for sales = $19245

Ending inventory unit = 470-414 = 56 units

Ending inventory value = 56*43 = $2408

Cost of goods sold = 19245-2408 = $16837

Sales revenue = 414*55 = $22770

Gross profit = 22770-16837 = $5933