Question

Required information (The following information applies to the questions displayed below.) During the year, Trombley Incorporated has the following inventory transactions. Number of Units Date Transaction Jan. 1 Beginning inventory Mar. 4 Purchase Jun. 9 Purchase Nov.11 Purchase Unit Cost $ 14 13 12 Total Cost $ 168 221 264 17 10 220 $ 873 For the entire year, the company sells 60 units of inventory for $22 each. Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. FIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of # of units Cost per Goods unit Available for Sale $ # of units Cost per unit Cost of Goods Sold Cost Ending #of units per unit Inventory $ 0 $ Beginning Inventory Purchases: Mar 04 Jun 09 Nov 11 Total $ 0 $ 00 0 $ 0 0 $ 0 | Sales revenue Gross profit

Answer 1

Correct Answer:

FIFO	Cost of Goods Available for sale			Cost of goods sold			Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
Beginning inventory	12	14	168	12	14	168	0	14	0
Purchases:
04-Mar	17	13	221	17	13	221	0	13	0
09-Jun	22	12	264	22	12	264	0	12	0
11-Nov	22	10	220	9	10	90	13	10	130
Total	73		873	60		743	13		130

Sales Revenue ( 60 units * $22)	$                     1,320.00
Less: Cost of goods sold	$                         743.00
Gross profit	$                         577.00

LIFO	Cost of Goods Available for sale			Cost of goods sold			Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
Beginning inventory	12	14	168	0	14	0	12	14	168
Purchases:
04-Mar	17	13	221	16	13	208	1	13	13
09-Jun	22	12	264	22	12	264	0	12	0
11-Nov	22	10	220	22	10	220	0	10	0
Total	73		873	60		692	13		181

Sales Revenue	$                     1,320.00
Less: Cost of goods sold	$                         692.00
Gross profit	$                         628.00

Weighted Average cost	Cost of Goods Available for sale			Cost of goods sold			Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
Beginning inventory	12	14	168
Purchases:
04-Mar	17	13	221
09-Jun	22	12	264
11-Nov	22	10	220	60	$           11.96	$                  717.53	13	$                     11.96	$                       155.47
Total	73		873	60		$                  717.53	13		$                       155.47

Sales Revenue	$                     1,320.00
Less: Cost of goods sold	$                         717.53
Gross profit	$                         602.47

Working:

Weighted Average Cost Per unit
Units		(A)	73
Total Cost		(B)	$                  873.00
Average Cost		(C=B/A)	$                    11.96

End of answer.

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