TsIzzWe (Ts) is a company that purchases T shirts from the manufacturer, Frootyluums (Frooty) and sells them to college students through the college bookstore, Rskoolstore (RSkool). Ts has hired you to be the accountant for the company.

Ts had used the periodic inventory system prior to switching to the perpetual inventory system. Ts sold Long Sleeve Blue Shirts for $7.50

Ts sold Short Sleeve Blue Shirts for $6.50

Required:

Using the data provided for transactions that occurred during that time, determine the Gross Profit for that period using the Average Cost Inventory Flow Method.

Transcribed Image Text:

May 1: Inventory Balance: Long Sleeve (LS)Blue Shirts: Inventory Balance: Short Sleeve (SS) Blue Shirts: May 5 Purchase: May 5 Purchase: May 9 Purchase: May 13 Purchase: 40 LS Blue @3.50 25 SS Blue @ 2.25 100 LS Blue @ 3.70 300 SS Blue @ 2.40 200 SS Blue @ 2.42 50 SS Blue @ 2.45 144 SS Blue @ 2.50 300 SS Blue @ 2.52 250 LS Blue @ 4.00 Inventory Balance: Long Sleeve Blue Shirts: Inventory Balance: Short Sleeve Blue Shirts: May 15 Purchase: May 20 Purchase: May 24 Purchase: May 27 Purchase: May 30 Purchase: May 30: 180 @ $3 55 @ $2 195 124 May 1: Inventory Balance: Long Sleeve (LS)Blue Shirts: Inventory Balance: Short Sleeve (SS) Blue Shirts: May 5 Purchase: May 5 Purchase: May 9 Purchase: May 13 Purchase: 40 LS Blue @3.50 25 SS Blue @ 2.25 100 LS Blue @ 3.70 300 SS Blue @ 2.40 200 SS Blue @ 2.42 50 SS Blue @ 2.45 144 SS Blue @ 2.50 300 SS Blue @ 2.52 250 LS Blue @ 4.00 Inventory Balance: Long Sleeve Blue Shirts: Inventory Balance: Short Sleeve Blue Shirts: May 15 Purchase: May 20 Purchase: May 24 Purchase: May 27 Purchase: May 30 Purchase: May 30: 180 @ $3 55 @ $2 195 124

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Under perpetual inventory system the company will record the inventory at the end of reg... View the full answer