Question

Fit Gym began October with merchandise inventory of 78 crates of vitamins that cost a total of $4,290. During the month, Fit Gym purchased and sold merchandise on account as follows: EEB (Click the icon to view the transactions.) Read the requirements. Requirement 1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. 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.) Purchases Unit Cost Total Cost Cost of Goods Sold Unit Cost Total Cost Inventory on Hand Unit Cost Total Cost Date Quant Quanti Quantity Data Table Oct. 1 Oct. 5 Purchase 13 Sale 18 Purchase 26 Sale 156 crates64 each 180 crates 98 each 114 crates 75 each 150 crates 112 each 18 26 Print Done Totals Determine the company's gross profit using the FIFO inventory costing method. Gross profit is $ using the FIFO inventory costing method.

Answer 1

1 FIFO etual system Purchases Cost of Goods Sold Unit Cost Inventory on Hand Date Quantity (Crates) Unit Cost (S) Total Cost Quantity (Crates) Total Cost (S) Quantity (CratesUnit Cost (S Total Cost 4,290 4,290 9,984 3,456 3,456 8,550 1,350 Opening Oct 1 78 78 156 54 54 114 18 156 64 9,984 64 64 64 78 102 4,290 6,528 13 64 18 114 75 8,550 3,456 7,200 54 26 75 96 75 Totals 270 18,534 330 18 75 1,350 Calculation of Gross Profit using FIFO: Sales Revenue: 34,440.00 (180*98) (150 * 112) $ $ 17,640.00 16,800.00 Less: Cost of Goods Sold $ 21,474.00 Gross Profit 12,966.00