During the year, TRC Corporation has the following inventory transactions Number

Question

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

Explanation / Answer

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

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