Question: Assume a Roots outlet store began August 2017 with 40 units of inventory that cost $30 each. The sale price of these units was $60.

Assume a Roots outlet store began August 2017 with 40 units of inventory that cost $30 each. The sale price of these units was $60. During August, the store completed the following inventory transactions.

Requirements
1. Determine the store's cost of goods sold for August under the periodic inventory system. Assume the FIFO method.
2. Compute gross profit for August.
3. Last year, gross profit was $3,150. What could management do to improve gross profit?

Units 16 70 24 Unit Cost Unit Sale Price $60 62 60 62 62 73 62 5 $30 31 30 31 31 32 31 Aug. 3 Sale 8 Purchase 11 Sale 19 Sale 24 Sale 30 Purchase 31 Sale 30 28 15

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