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Note : I posted Question before but the answer is not correct as my teacher said and I posted again please answer correctly Question: Q4

Note : I posted Question before but the answer is not correct as my teacher said and I posted again please answer correctly

Question: Q4

Flounder Inc. is a retailer using a perpetual inventory system. All sales returns from customers result in the goods being returned to inventory. (Assume that the inventory is not damaged.) Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Flounder Inc. for the month of January.

Date

Description

Quantity

Unit Cost or Selling Price

Dec.

31

Ending inventory

160

$19

Jan.

2

Purchase

100

23

Jan.

6

Sale

180

38

Jan.

9

Sale return

10

38

Jan.

9

Purchase

75

24

Jan.

10

Purchase return

15

24

Jan.

10

Sale

50

45

Jan.

23

Purchase

100

27

Jan.

30

Sale

120

51

(a)

Using Average cost of goods method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Assume sales returns had a cost of $19 and purchase returns had a cost of $24.)

Cost of goods sold

$

Ending Inventory

$

Gross Profit

$

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