_____________________________________________ Flint Outdoor Stores Inc. uses a p
ID: 2407267 • Letter: #
Question
_____________________________________________
Flint Outdoor Stores Inc. uses a perpetual inventory system and has a beginning inventory, as at April 1, of 143 tents. This consists of 50tents at a cost of $207 each and 93 tents at a cost of $229 each. During Apri, the company had the following purchases and sales of tents: Purchases Sales Units Unit Cost Units Unit Price $431 Date 73 Apr. 3 10 17 190 $274 251 431 305 287 30 193 431 Determine the cost of goods sold and the cost of the ending inventory using FIFO Cost of goods sold Cost of the ending inventory 4Explanation / Answer
Solution:
COGS: 136,515
Ending inventory: 34,727
Gross profit: 86,312
Gross profit margin: 38.73%
Working:
COGS:
Units sold
Unit cost
Amount
Apr-03
50
207
10,350
23
229
5,267
Apr-17
70
229
16,030
181
274
49,594
Apr-30
9
274
2,466
184
287
52,808
136,515
Ending inventory:
Ending inventory = Opening + purchases -sales = 143 + 495 - 517 = 121
Units
Unit cost
Amount
121
287
34,727
Gross profit:
Sales - COGS = 517 * 431 - 136,515 = 222827 - 136,515 = 86,312
Gross profit margin: = 86,312 / 222,827 = 0.38735 = 38.73%
Units sold
Unit cost
Amount
Apr-03
50
207
10,350
23
229
5,267
Apr-17
70
229
16,030
181
274
49,594
Apr-30
9
274
2,466
184
287
52,808
136,515
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