Gulf Trading Company reported the following January purchases and sales data for its only product for...
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Gulf Trading Company reported the following January purchases and sales data for its only product for the month of January 2021. Date Jan. 1 Beginning inventory. Jan. Sales 10 Jan. 20 Jan. 25 Jan. 30 Purchase. Sales Purchase Activities Totals Units Acquired at Cost 140 units @ $6.00 = $ 840 60 units @ $5.00 = 180 units @ $4.50 = 380 units 300 810 $1,950 Units Sold at Retail 100 units @ $15 80 units @ $15 180 units Required: You have to use "FIFO" and "Average Method" and calculate the following: a) Calculate cost of ending inventory on Jan 31st, 2021. b) Calculate cost of goods sold for the period ending on Jan 31st, 2021, c) Calculate gross profit for the period ending on Jan 31st, 2021. Gulf Trading Company reported the following January purchases and sales data for its only product for the month of January 2021. Date Jan. 1 Beginning inventory. Jan. Sales 10 Jan. 20 Jan. 25 Jan. 30 Purchase. Sales Purchase Activities Totals Units Acquired at Cost 140 units @ $6.00 = $ 840 60 units @ $5.00 = 180 units @ $4.50 = 380 units 300 810 $1,950 Units Sold at Retail 100 units @ $15 80 units @ $15 180 units Required: You have to use "FIFO" and "Average Method" and calculate the following: a) Calculate cost of ending inventory on Jan 31st, 2021. b) Calculate cost of goods sold for the period ending on Jan 31st, 2021, c) Calculate gross profit for the period ending on Jan 31st, 2021.
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Introduction The inventory can be valued using various methods as LIFO FIFO an d average method Solu... View the full answer
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