Asked by Maegan Neuman on Jul 30, 2024
Verified
Using the table provided, calculate total sales, cost of goods sold, gross profit, and ending inventory using each of the FIFO perpetual inventory method.
A) Total sales: $56,975.00 Cost of goods sold: $36,431.25
Gross profit: $20,543.75
Ending inventory: $19,981.2
B) Total sales: $56,975.00 Cost of goods sold: $36,587.50
Gross profit: $20,387.50
Ending inventory: $19,825.00
C) Total sales: $56,975.00 Cost of goods sold: $37,312.50
Gross profit: $19,662.50
Ending inventory: $19,573.25
D) Total sales: $56,975.00 Cost of goods sold: $37,401.75
Gross profit: $19,573.25
Ending inventory: $19,010.75
FIFO Perpetual
A continuous inventory system where the cost of goods sold is calculated using the FIFO method, consistently updating the inventory and cost records after each transaction.
Total Sales
The sum of all revenue generated from the sale of goods or services over a specified period.
Gross Profit
A company's revenue minus its cost of goods sold, indicating how efficiently a company uses its resources in production.
- Acquire the ability to calculate and comprehend multiple inventory accounting strategies such as FIFO, LIFO, and Average cost.
- Examine the consequences of selecting specific inventory valuation approaches on the cost of goods sold, ending inventory balance, and gross revenue.
Verified Answer
Learning Objectives
- Acquire the ability to calculate and comprehend multiple inventory accounting strategies such as FIFO, LIFO, and Average cost.
- Examine the consequences of selecting specific inventory valuation approaches on the cost of goods sold, ending inventory balance, and gross revenue.
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