Example Four:

MNOP, Inc. began operations on December 1^st of this year. They purchased 60 mountain bikes for $2,000 each on December 5 and purchased 30 mountain bikes for $2,100 each on December 20. It sold 72 units for $3,800 each on December 21.

Required: Assuming a perpetual inventory system and using the FIFO method:

Calculate the dollar amount for Cost of Goods Sold,

Calculate the dollar amount for Ending Inventory,

Calculate Sales Revenue, and

Calculated Gross Profit (Gross Margin).

	FIFO
Cost of goods sold (dollar amount)	1. $
Ending Inventory (dollar amount)	2. $
Sales Revenue	3. $
Gross Profit (Gross Margin)	4. $