ITA Corp. had the following inventory purchases and sales during August: August 6 Purchased 100 units...

 

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ITA Corp. had the following inventory purchases and sales during August: August 6 Purchased 100 units $25 each. August 10 August 14 Sold 130 units at a selling price of $55. Purchased 50 units $27 each. Purchased 25 units $29 each. August 18 August 22 Sold 120 units at a selling price of $60. August 26 Sold 35 units at a selling price of $63 each. Purchased 60 units $33 each. August 28 On July 31, ITA Corp. had 120 units in inventory that cost $22 each. Required: 1. Calculate ITA Corp's cost of goods sold and ending inventory using the FIFO method and the average cost method. 2. Calculate the gross profit and gross profit margin under each inventory valuation method. ITA Corp. had the following inventory purchases and sales during August: August 6 Purchased 100 units $25 each. August 10 August 14 Sold 130 units at a selling price of $55. Purchased 50 units $27 each. Purchased 25 units $29 each. August 18 August 22 Sold 120 units at a selling price of $60. August 26 Sold 35 units at a selling price of $63 each. Purchased 60 units $33 each. August 28 On July 31, ITA Corp. had 120 units in inventory that cost $22 each. Required: 1. Calculate ITA Corp's cost of goods sold and ending inventory using the FIFO method and the average cost method. 2. Calculate the gross profit and gross profit margin under each inventory valuation method.

Answer rating: 100% (QA)

Date Aug 2 Aug 4 Aug 15 Aug 19 Aug 25 Purchases 500 units x 35 17500 350 un... View the full answer