Fong Sai-Yuk Company sells one product. Presented below is information for Janua

Question

Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company.

Fong Sai-Yuk uses the FIFO cost flow assumption. All purchases and sales are on account.

Jan. 1 Inventory 126 units at $5 each 4 Sale 106 units at $8 each 11 Purchase 154 units at $6 each 13 Sale 121 units at $9 each 20 Purchase 167 units at $6 each 27 Sale 103 units at $11 each Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company. Fong Sai-Yuk uses the FIFO cost flow assumption. All purchases and sales are on account.

Explanation / Answer

Sales = 103*11 + 121*9 + 106*8 = 3070

Costs = 126*5 + 154*6 + 50*6 = 1854

Gross profit = sales-costs = 3070-1854 = $ 1,216

Hope this helped ! Let me know in case of any queries.

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