Question
Grady Yarn Shop, a regional Craft Market, maintains acrylic yarn by the skein. The second months yarn purchases and sales at its Columbus, Ohio, location
Grady Yarn Shop, a regional Craft Market, maintains acrylic yarn by the skein. The second months yarn purchases and sales at its Columbus, Ohio, location follow:
Date | Description | Quantity | Unit Cost or Selling Price |
Nov 1 | Beginning Inventory | 10 | $3.25 |
Nov 2 | Purchase | 11 | $3.28 |
Nov 6 | Purchase | 2 | $3.30 |
Nov 8 | Sold | 3 | $6.80 |
Nov 13 | Purchase | 2 | $3.35 |
Nov 14 | Sold | 3 | $7.00 |
Nov 25 | Purchase | 4 | $3.38 |
Nov 28 | Sold | 5 | $7.10 |
Required:
Calculate the value of (i) ending inventory, (ii) Cost of Goods Sold, and (iii) gross profit using the Weighted Average cost flow assumption, following the periodic inventory approach.
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