Question 4 Mr Peter is using a perpetual inventory system since the information on inventory quantity and availability is updated on a continuous/real-time basis under this system. The business of Mr Peter is comparatively new, and he decided to sell only one type of shirt. Further, Mr Peter uses the FIFO cost flow assumption to manage the inventory. Table 1 below presents the inventory and sales record for Mr Peter for February 20X3. Table 1. Inventory Record of Mr Peter Date Units Purchased 2 1 215 units at $11 7 11 19 28 9 16 24 729 units at $12 486 units at $14 1 215 units at $13 162 units at $15 Unit Sold b) Cost of closing inventory c) The gross profit 243 1458 567 Selling price per unit (S) 15 15 17 Required: Based on the above information, calculate the following for February 20X3: a) Cost of goods sold (COGS)
Question 4 Mr Peter is using a perpetual inventory system since the information on inventory quantity and availability is updated on a continuous/real-time basis under this system. The business of Mr Peter is comparatively new, and he decided to sell only one type of shirt. Further, Mr Peter uses the FIFO cost flow assumption to manage the inventory. Table 1 below presents the inventory and sales record for Mr Peter for February 20X3. Table 1. Inventory Record of Mr Peter Date Units Purchased 2 1 215 units at $11 7 11 19 28 9 16 24 729 units at $12 486 units at $14 1 215 units at $13 162 units at $15 Unit Sold b) Cost of closing inventory c) The gross profit 243 1458 567 Selling price per unit (S) 15 15 17 Required: Based on the above information, calculate the following for February 20X3: a) Cost of goods sold (COGS)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 41BE: ( Appendix 6B) Inventory Costing Methods: Periodic Inventory Systems. Refer to the information for...
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