Question
Blue Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June 1, of 490 bookcases at a cost of $130
Blue Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June 1, of 490 bookcases at a cost of $130 each. During June, the company had the following purchases and sales of bookcases:
Purchases | Sales | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Date | Units | Unit cost | Units | Unit price | ||||||
June | 6 | 1,200 | $132 | |||||||
10 | 1,030 | $204 | ||||||||
14 | 1,770 | 133 | ||||||||
16 | 1,670 | 209 | ||||||||
26 | 960 | 134 |
(a)
Correct answer iconYour answer is correct.
Determine the cost of goods sold and the cost of the ending inventory using the average cost formula. (Use unrounded numbers for average cost calculations. Round answers to 2 decimal places. e.g 5.52.)
Cost of goods sold | $ 356,756.12 | ||
---|---|---|---|
Cost of the ending inventory | $229,393.88 |
(b)
Calculate Blue Furnitures gross profit and gross profit margin for the month of June. (Round gross profit margin to 1 decimal place, e.g. 15.1 and gross profit to the nearest whole dollar, e.g. 1525.)
Gross profit | $enter the gross profit in dollars rounded to 0 decimal place | ||
---|---|---|---|
Gross profit margin | enter the gross profit margin in percentages rounded to 1 decimal place | % |
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