Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check My Work Note that this exercise uses the periodic inventory system. FIFO means that the first units purchased are assumed to be the first

image text in transcribed
Check My Work
Note that this exercise uses the periodic inventory system. FIFO means that the first units purchased are assumed to be the first
to be sold. Therefore, ending inventory costs for the period are calculated by taking the number of items remaining in the physical
inventory times the most recent purchase price. If the number of items in last purchase layer is less than the number in ending
inventory, the balance of the ending inventory items must be recorded at the second most recent purchase cost. The cost of
merchandise sold for the period can be calculated by subtracting the ending inventory from the total cost of goods available for
sale.
Note that this exercise uses the periodic inventory system. LIFO means the last units purchased are assumed to be the first to be
sold. Therefore the ending inventory for the period is made up of the earliest costs from the period (the beginning inventory). If
the number of units in the ending inventory is greater than the units in the beginning inventory, the excess units will be recorded
2. determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.
Total sales $fill in the blank 114
Total cost of merchandise sold fill in the blank 115
Gross profit $fill in the blank 116
3. Determine the ending inventory cost on June 30.
$fill in the blank 117
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood

10th Canadian edition Volume 2

978-0134213118, 134213114, 133855384, Google Book, 978-0133855388

More Books

Students also viewed these Accounting questions

Question

What is a firewall?

Answered: 1 week ago

Question

d. Is it part of a concentration, minor, or major program?

Answered: 1 week ago

Question

Are personality tests useful tools for organizational hiring?

Answered: 1 week ago

Question

What are the various types of emotional ability?

Answered: 1 week ago