Riverbed Outdoor Stores Inc. uses a perpetual inventory system and has a beginni
ID: 2573309 • Letter: R
Question
Riverbed Outdoor Stores Inc. uses a perpetual inventory system and has a beginning inventory, as at April 1, of 152 tents. This consists of 51 tents at a cost of $211 each and 101 tents at a cost of $222 each. During April, the company had the following purchases and sales of tents:
Determine the cost of goods sold and the cost of the ending inventory using FIFO.
Calculate Riverbed Outdoors’s gross profit and gross profit margin for the month of April.
Purchases Sales Date Units Unit Cost Units Unit Price Apr. 3 75 $421 10 208 $280 17 240 421 24 286 295 30 207 421Explanation / Answer
FIFO Perpetual
Receipts
Cost of Goods Sold
Balance
Date
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1st April
Beg Inventory
51
$ 211.00
$ 10,761.00
Beg Inventory
101
$ 222.00
$ 22,422.00
1st April
Sales
51
$ 211.00
$ 10,761.00
24
$ 222.00
$ 5,328.00
77
$ 222.00
$ 17,094.00
10th April
Purchases
208
$ 280.00
$ 58,240.00
208
$ 280.00
$ 58,240.00
17th April
Sales
77
$ 222.00
$ 17,094.00
163
$ 280.00
$ 45,640.00
45
$ 280.00
$ 12,600.00
24th April
Purchases
286
$ 295.00
$ 84,370.00
286
$ 295.00
$ 84,370.00
30th April
Sales
45
$ 280.00
$ 12,600.00
162
$ 295.00
$ 47,790.00
124
$ 295.00
$ 36,580.00
Total
646
$ 175,793.00
522
$ 139,213.00
124
$ 36,580.00
Sales (75+240+207) x $421=$219,762
Less: Cost of Goods Sold =$139,213
Gross Profit =$80,549
Gross profit margi= Gross Profit/ sales=$80,549/$219,762 X 100=36.65%
FIFO Perpetual
Receipts
Cost of Goods Sold
Balance
Date
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1st April
Beg Inventory
51
$ 211.00
$ 10,761.00
Beg Inventory
101
$ 222.00
$ 22,422.00
1st April
Sales
51
$ 211.00
$ 10,761.00
24
$ 222.00
$ 5,328.00
77
$ 222.00
$ 17,094.00
10th April
Purchases
208
$ 280.00
$ 58,240.00
208
$ 280.00
$ 58,240.00
17th April
Sales
77
$ 222.00
$ 17,094.00
163
$ 280.00
$ 45,640.00
45
$ 280.00
$ 12,600.00
24th April
Purchases
286
$ 295.00
$ 84,370.00
286
$ 295.00
$ 84,370.00
30th April
Sales
45
$ 280.00
$ 12,600.00
162
$ 295.00
$ 47,790.00
124
$ 295.00
$ 36,580.00
Total
646
$ 175,793.00
522
$ 139,213.00
124
$ 36,580.00
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