Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 300 units at

image text in transcribed
image text in transcribed
In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 300 units at $7 on January 1 (2) 450 units at $8 on January 8 (3) 750 units at $9 on January 29 Assuming it sold 600 units for $15 each on January 15, and 900 units are left on hand at the end of the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under FIFO, LIFO, and Weighted Average Costs. Assume a perpetual inventory system is used. Then calculate the gross profit and gross profit margin for the period for FIFO, LIFO, and Weighted Average Costs. Perpetual FIFO Purchase Cost of Goods Sold Balance in Inventory Date Description Total Cost Cost Cost Units Unit. Cost Units Unit Cast Total Cost Units Total. 1-Jan Purchased 8-Jan Purchased 15-Jan Sold 600 units 29-Jan Purchased Total FIFO Sales Cost of Goods Sold Gross Profit Gross Margin % Perpetual LIFO Date Description Units Purchase Unit Total Cost Cost Cost of Goods Sold Lint Total Units Cost Cast Balance in Inventory Lait Total Units Cost Cost 1-Jan Purchased 8-Jan Purchased 15-Jan Sold 600 units 29-Jan Purchased Total LIFO Sales Cost of Goods Sold Gross Profit Gross Margin% Perpetual Weighted Average Cost Purchase Unit Cost Total Cost Cost of Goods Sold Unit Units Total Cost Cost Balance in Inventory Total Total. Per Unit Units Cost Cost Units Date Description 1-Jan Purchased 8-Jan Purchased 15-Jan Sold 600 units 29-Jan Purchased Total Wgt Avg Sales Cost of Goods Sold Gross Profit Gross Margin %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions