Homework Week 4 Chapter 06 exercises core 0 of 1 pt 619 sim

Homework: Week 4 - Chapter 06 exercises core: 0 of 1 pt 6-19 (similar to) Assume that B R Toys store bought and sold a line of dols during December as follows: 7 of 10 (6 complete) HW Score: 53.555 (Click the licon to view the transactions) R Toys uses the perpetual inventory system. Read the requirements tequirement 1. Compute the cost of goods sold, cost of ending merchandise inventory, and gross proflt using the FIFO inventory costing method. costing method. Enter the transactions in chronological ander, caloulating new inventory on hand balances ater e quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the perlod. (Enter the oldest inventory layers nce all of the transactions have been entered into the perpetual record, calculate the Cost of Goods Sold Inventory on Hand Purchases Unit Total Unit Total Unit Total Date Quantity Cost Cost Quantily Cst t Quantity Cost Cost Dec 1 Dec. 8 Dec. 14 Dec. 21 Totals

Solution

FIFO Purchases Sales Closing Units Cost per unit Total Cost Units Cost per unit Total Cost Units Cost per unit Total Cost Opening 13.00 $              11.00 $   143.00         13.00 $     11.00 $ 143.00 08.12.           6.00 $     11.00 $     66.00           7.00 $     11.00 $     77.00 14.12 16.00 $              15.00 $   240.00           7.00 $     11.00 $     77.00         16.00 $     15.00 $ 240.00 21.12           7.00 $     11.00 $     77.00           8.00 $     15.00 $ 120.00           8.00 $     15.00 $ 120.00 $   383.00 COGS $ 263.00 COST OF GOODS SOLD $   263.00 COST OF CLOSING INVENTORY $   120.00 GROSS PROFIT SALES : (6+15 UNITS)*$21 $   441.00 Less: cogs $ (263.00) GROSS PROFIT $   178.00 LIFO Purchases Sales Closing Units Cost per unit Total Cost Units Cost per unit Total Cost Units Cost per unit Total Cost Opening 13.00 $              11.00 $   143.00         13.00 $     11.00 $ 143.00 08.12.           6.00 $     11.00 $     66.00           7.00 $     11.00 $     77.00 14.12 16.00 $              15.00 $   240.00           7.00 $     11.00 $     77.00         16.00 $     15.00 $ 240.00 21.12         15.00 $     15.00 $ 225.00           7.00 $     11.00 $     77.00           1.00 $     15.00 $     15.00 $   383.00 COGS $ 291.00 COST OF GOODS SOLD $   291.00 COST OF CLOSING INVENTORY $      92.00 [77+15] GROSS PROFIT SALES : (6+15 UNITS)*$21 $   441.00 Less: cogs $ (291.00) GROSS PROFIT $   150.00 LIFO WILL RESULT IN HIGHER COGS I.E., $291 FIFO WILL RESULT IN HIGHEST CONT OF ENDING INVENTORY FIFO WILL RESULT IN HIGHER GROSS PROFIT