QUESTION 6

PART 1

PART 2.

Determining Gross Profit During the current year, merchandise is sold for $8,100,000. The cost of the goods sold is $4,698,000. a. What is the amount of the gross profit? b. Compute the gross profit percentage (gross profit divided by sales). % FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory 21 units at $49 Sale 17 units at $76 First purchase 16 units at $51 Sale 15 units at $76 Second purchase 20 units at $52 Sale 9 units at $76 The firm uses the perpetual inventory system, and there are 16 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? b. What is the total cost of the ending inventory according to LIFO