Assume a Gold Medal Sports outlet store began August 2012 with 44 pairs of running shoes that cost the store $33 each. The sale price of these shoes was $61. During August, the store completed these inventory transactions:

Requirements
1. The preceding data are taken from the store€™s perpetual inventory records. Which cost method does the store use? Explain how you arrived at your answer.
2. Determine the store€™s cost of goods sold for August. Also compute gross profit for August.
3. What is the cost of the store€™s August 31 inventory of runningshoes?

Transcribed Image Text:

Units Unit Cost S33 34 Unit Sale Price Aug 2 Sale... 15 Purchase... 79 Sa.. 29 Sa1 Sale..30 Purchase... 26 S61 13 18 61 63 34 34 35