Weighted average? Gross Profit? Inventory Turnover?

65 Problem 1- (20 points) The information shown below relates to an inventory item at Acme Plumbing Supply for the month of January Date Explanation Units Unit Cost Total Cost 1/1 Beginning Inventory 200 $ 50 10,000 1/4 Purchase 400 60 24,000 1/6 Purchase 400 26.000 1/10 Purchase 6000 40 24.000 Goods available for sale 1,600 84.000 Unit selling price for the month was constant at $120. A physical count of the inventory at the end of January revealed that 520 units remained in inventory at January 31. sold 1080 1600-520 Required: a. Calculate COST OF GOODS SOLD for January using (1) FIFO. (2) LIFO and (3) weighted average. SHOW WORK. Round COGS to whole dollars. (3 pts each) Cost of goods sold 1080 6. COGS FIFO Topoo 2400 ZEDS 320 COGS=63,200 COGS LIFO 24 000 26000 4000 COGS= 54,800 COGS Weighted Average 84,000/1600 -5.25 por unt 1080 (5.25) 5670/? Problem 1 - Continued b. Prepare the two journal entries which are necessary to record the sale in January assuming Acme uses FIFO and all sales were on account. ALL BOXES ARE USED. (4 points) Account Title and Description Debit Credit COGS 63,200 63,200 Inventory 20,800 Account Title and Description Debit Credit Accounts Recievable Recievable 20, Boo 1 Sales Revenue Calculate Gross Profit for January, assume Acme uses FIFO. SHOW WORK (2 pts) 84000 -63,200 3 21000 c. 2 d. Assume Acme uses FIFO. Calculate Inventory Turnover for January. The formula for inventory turnover is (COGS/Average Inventory) (1 pt) COG 63,200 630 100