Assume that Upper B Upper R Toys store bought and sold a line of dolls during De
ID: 2542153 • Letter: A
Question
Assume that Upper B Upper R Toys store bought and sold a line of dolls during December as follows: LOADING...(Click the icon to view the transactions.) Upper B Upper R Toys uses the perpetual inventory system. Read the requirements. LOADING... Requirement 1. Compute the cost of goods sold, cost of ending merchandise inventory, and gross profit using the FIFO inventory costing method. Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Transactions
Dec. 1 Beginning merchandise inventory 11units @$11each
8 Sale 8units @$18each
14 Purchase 14units @$14each
21 Sale 13units @$18each
Purchases
Cost of Goods Sold
Inventory on Hand
Unit
Total
Unit
Total
Unit
Total
Date
Quantity
Cost
Cost
Quantity
Cost
Cost
Quantity
Cost
Cost
Dec. 1
Dec. 8
8
Dec. 14
14
$14
$196
Dec. 21
Totals
Purchases
Cost of Goods Sold
Inventory on Hand
Unit
Total
Unit
Total
Unit
Total
Date
Quantity
Cost
Cost
Quantity
Cost
Cost
Quantity
Cost
Cost
Dec. 1
Dec. 8
8
Dec. 14
14
$14
$196
Dec. 21
Totals
Explanation / Answer
Calculation of closing inventory, cost of goods sold and gross profit-
Gross profit= sales-cost of sales
(13U*18$)-{(3U*11$)+(10U*14$)}
143$-176$
(33$)
Therefore there is loss of 33$.
DATE PURCHASES SALES BALANCE 1 Dec 11U*11$=121$ 8Dec 8U*18$=144$ 3U*11$=33$ 14Dec 14U*14$=196$ 3U*11$=33$ 14U*14$=196$ 21Dec 13U*18$=143$ 4U*14$=56$ TOTAL 143$ 56$Related Questions
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