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Using Average method, calculate (a) cost of goods sold, (b) ending inventory, and (c) gross profit. ( Round average cost to 3 decimal places and
Using Average method, calculate (a) cost of goods sold, (b) ending inventory, and (c) gross profit. (Round average cost to 3 decimal places and final answers to 2 decimal places,)
Assume sales returns had a cost of $19 and purchase returns had a cost of $25.
My answer is wrong, can you help me to find out why?
Average cost: ((160*19)+(100*22)+ (60*25)+ (100*27))/ (160+100+60+100)= 22.476
Cost of good sold: 22.476*(170+50+120)= 7641.84 (wrong)
Ending inventory: 80*22.476= 1798.08 ( wrong)
Gross profit= 15200-7641.84=7558.16 (wrong)
Bridgeport 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 Bridgeport Inc. for the month of January. Unit Cost or Date Selling Price $19 22 31 2 Quantity 160 100 180 10 Dec. Jan. Jan. Jan. 6 41 9 41 Description Beginning inventory Purchase Sale Sale return Purchase Purchase return Sale Purchase Sale Jan. 9 25 75 15 Jan. 10 25 10 47 Jan. Jan. 50 100 23 27 Jan. 30 120 49Step by Step Solution
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