Use First In, First Out (FIFO)

Required: 1. Total Cost of the Ending Inventory 2. Total Cost of Goods Sold 3. Gross Profit

Problem II - Red Company provided the following inventory formation relating to television sets for the current year: Units Unit cost January 1 Inventory on hand 200 P 7,500 April 1 Purchase 300 9,000 October 1 Purchase 500 10,000 The entity sold 700 TV sets during the year. A physical count on December 31 indicated that 300 TV sets are on hand