Question

URGENTTT URGENT URGNET PLZ HELP

Little Mexico Leather, a distributor of leather products, uses the FIFO method for valuing inventories. It began January with 58 units of an inventory item that cost $172 each. During January, the store completed these inventory transactions: A (Click the icon to view the transactions.) Required 1. Prepare a perpetual inventory record for this item. 2. Determine the store's cost of goods sold for January. 3. Compute gross margin for January. Requirement 1. Prepare a perpetual inventory record using the FIIFO method. (Enter the oldest inventory layer first.) Leather Product More Info Purchases Cost of Goods Sold Inventory on Hand QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost Tot. Cost Unit Cost Date QTY Jan 1 Unit Sale Price $282 Units Unit Cost Jan 3 Jan 3 Sale. 42 8 Purchase.. 86 $182 21 Sale. 30 Purchase.. 70 $292 18 $190 Jan 8 Jan 21 Print Done Jan 30 Ending Enter any number in the edit fields and then continue to the next question.

URGENTTT URGENT URGNET PLZ HELP

URGENTTT URGENT URGNET PLZ HELP

Answer 1

Leather Product
	Purchases			Cost of goods sold			Inventory on Hand
Date	Units	Unit cost	Total Cost	Units	Unit cost	Total Cost	Units	Unit Cost	Total Cost
Jan. 1							58	172	9,976
Jan. 3				42	172	7,224	16	172	2,752
Jan. 8							16	172	2,752
	86	182	15,652				86	182	15,652
Jan. 21				16	172	2,752
				54	182	9,828	32	182	5,824
Jan. 30							32	182	5,824
	18	190	3,420				18	190	3,420

2.

Cost of goods sold = 7,224+2,752+9,828= $19,804

3.

Sales = Number of units sold x Selling price per unit

= 42 x 282 + 70 x 292

= 11,844+20,440

= $32,284

Gross margin = Sales - Cost of goods sold

= 32,284-19,804

= $12,480

Kindly comment if you need further assistance.

Thanks‼!