Assume a Tiger Sports outlet store began October 2010 with 48 pairs of running shoes that cost the store $34 each. The sale price of these shoes was $69.
During October, the store completed these inventory transactions:

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

Transcribed Image Text:

Units Unit Cost Units Sales Price 2 Sale.. Purchase.... 83 Sale37 Sale.6 S34 35 34 35 Oct 3 $69 19 24 30 Sa 38 71 ale Purchase... 36