Chapter 6 Homework Assignment (Show work to receive credit.)

1) A company purchased 100 units for $10 each on January 1. It purchased another 50 units for $15 each on January 12. It sold 80 units for $30 each on January 31. The company uses the first-in, first-out inventory (FIFO) costing method, (Assume that the company uses a perpetual inventory system.)

A) What is the amount of Cost of Goods Sold on the income statement for month ending Jan 31?

B) What is the amount of Merchandise Ending Inventory still available for sale on Jan 31?

C) Assuming this is the only product the company sold, what is the amount of Gross Profit reported for January?

Need to show calculations.