Assume a Parda factory outlet store began August 20x9 with 65 units of goods that cost £140 each. The sale price of these units was £270. During August, the store completed the following inventory transactions:

Required 

1 Determine the store’s cost of goods sold for August under the periodic inventory system. Assume the FIFO stock valuation method.
2 Compute gross profit for August.

Transcribed Image Text:

Units Unit cost Unit sale price August 2 Sale 16 140 270 10 Purchase 80 141 13 Sale 34 140 270 18 Sale 9 141 272 22 Sale 35 141 272 29 Purchase 18 142 31 Sale 10 141 272