Question

Exercise 6-5A Calculate inventory amounts when costs are declining (LO6-3) [The following information applies to the questions displayed below.) During the year, Trombley Incorporated has the following inventory transactions. Vurber Unit COST Date Transaction Jan. 1 Beginning inventory Mar. 4 Purchase Jun. 9 Purchase Nov.11 Purchase Total Cost $ 399 480 551 493 $1,923 For the entire year, the company sells 80 units of inventory for $29 eoch

Answer 1

FIFO	Cost of Goods available for sale			Cost of goods sold			Ending Inventory
	# of units	Cost per unit	Cost of goods available for sale	# of units	Cost per unit	Cost of goods sold	# of units	Cost per unit	Ending Inventory
Beginning Inventory	19	$21	$399	19	$21	$399
Purchases:
March 04	24	$20	$480	24	$20	$480
June 09	29	$19	$551	29	$19	$551
Nov 11	29	$17	$493	8	$17	$136	21	$17	$357
Total	101		$1923	80		$1566	21		$357

Sales Revenue (80 units * $29)	$2320
Gross Profit	$754

Gross Profit = Sales Revenue – Cost of Goods sold

        = $2320 - $1566 = $754