23 April, 02:21

# The following are the transactions for the month of July:Units Unit Cost Unit Selling PriceJuly 1 Beginning Inventory 50 \$10July 13 Purchase 250 13July 25 Sold (100) \$15July 31 Ending Inventory 200Calculate the cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under FIFO. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places and your final answers to the nearest whole dollar amount.)

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1. 23 April, 04:05
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Cost of goods available for sale is \$ 3,750

Ending inventory is \$2,600

Sales is \$1,500

cost of goods sold is \$1,150

gross profit is \$ 350

Explanation:

FIFO Method is an Inventory System that Sells First the Oldest Inventory.

A periodic inventory system calculates the Cost of Inventory with each sale made rather than after a period (Periodic)

Cost of goods available for sale

Cost of goods available for sale = Opening Stock + Purchases

= (50 * \$10) + (250 * \$13)

= \$ 3,750

Ending inventory

July 31 : 200 * \$13 = \$2,600

Sales

July 25 : 100 * \$15 = \$1,500

cost of goods sold

July 25 : 50 * \$10 = \$500

50 * \$13 = \$650

Total = \$1,150

gross profit

Gross Profit = Sales - cost of goods sold

= \$1,500 - \$1,150

= \$ 350