Assume a Nike outlet store began in august 20X0 with 40 pairsof running shoes th

Question

Assume a Nike outlet store began in august 20X0 with 40 pairsof
running shoes that cost the store $40 each. The sale price oftheshoes
was $70. During august the store completed these inventory
transactions: (for the three sets of #'s below, the first columnis
the units, the second is unit cost, and the last is unit saleprice)

                                                                           Units   Unit Cost     Unit Sale Price
aug. 3Sale.....                                                        16        $40                  $70
8Purchase.....                                                       80        $41
11Sale.....                                                             24        $40                  $70
19Sale.....                                                             9          $41                   $72
24Sale.....                                                            30         $41                   $72
30Purchase.....                                                     18         $42

I've been stuck on this two part problem for two days and thebook
says to (1a.) determine the store's cost of goods sold foraugust.
Also compute the GP for august. When I did it I kept getting$1,456
but the answer key shows $2,409.

(1b.) what is the cost of the stores august 31 inventory ofrunning
shoes?when I did this one I got $1,484 but the answer key shows$2,437.

Can anyone please help. I don't know what I'm doing wrong or rightand
my text confuses me because it isn't showing any steps that Ican
fathom.
Thanks.

Explanation / Answer

Sales                           (16x 70 ) +  (24 x 70) + (9 x 72) + (30 x72)                                       $5,608
Cost of Goods Sold    (40 x 40) + (80 x41) + (18 x42)                                                         $3,199                                                                                                                                           ___________ Grossprofit                                                                                                                           $2,409                                                                                                                                           ========== Another way to calculate GP ==================== Total purchase plus openingStock      (40 x $40) + (80 x$41) + (18 x$42)                            $5,636 Less : Closing stock (See calculationbelow)                                                                             $2,437          Costof goodssold                                                                                                      $3,199 what is the cost of the stores august 31inventory ofrunning shoes                           Opening Stock of shoes 40 pairs + Total Purchase during themonths 98 pairs(80 + 18)       =138 pairs Less: Shoes sold during thye month  (16 + 24+ 9 +30)                                                      = 79 pairs Stock of shoes on August31                                                                                           =  59pairs Cost of 18 pairs @$42 (purchased on Aug.30)                       $756 Cost of 41 pairs @$41 (purchased on Aug.8)                       $1,687          Totalcost ofinventory                                               $2,437 what is the cost of the stores august 31inventory ofrunning shoes                           Opening Stock of shoes 40 pairs + Total Purchase during themonths 98 pairs(80 + 18)       =138 pairs Less: Shoes sold during thye month  (16 + 24+ 9 +30)                                                      = 79 pairs Stock of shoes on August31                                                                                           =  59pairs Cost of 18 pairs @$42 (purchased on Aug.30)                       $756 Cost of 41 pairs @$41 (purchased on Aug.8)                       $1,687          Totalcost ofinventory                                               $2,437

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