Accounting Ohsweken Outdoor Stores Inc. uses a perpetual inventory system and ha
ID: 2452601 • Letter: A
Question
Accounting
Ohsweken Outdoor Stores Inc. uses a perpetual inventory system and has a beginning inventory, as at April 1, of 175 tents. This consists of 44 tents at a cost of $209 and 131 tents at a cost of $229 each. During April, the company had the following purchases and sales of tents:
Purchases
Sales
Date
Units
Unit Cost
Units
Unit Price
Apr. 3
76
410
10
206
279
17
257
410
24
304
291
30
203
400
Determine the cost of goods sold and the cost of the ending inventory using FIFO.
cost of goods sold=
cost of the ending inventory=
Calculate Ohsweken Outdoors’s gross profit and gross profit margin for the month of April.
gross profit =
gross profit margin=
Purchases
Sales
Date
Units
Unit Cost
Units
Unit Price
Apr. 3
76
410
10
206
279
17
257
410
24
304
291
30
203
400
Explanation / Answer
Units Unit Cost cost of goods sold 44 209 9196 32 229 7328 cost of goods sold 76 16524 99 229 22671 158 279 44082 cost of goods sold 257 66753 48 279 13392 155 291 45105 cost of goods sold 203 58497 Sales Quantity Sales Price Sales Value Cost Of Goods Sold Margin 76 410 31160 16524 14636 257 410 105370 66753 38617 203 400 81200 58497 22703 536 217730 141774 75956 Ending Inventory QTY Opening Inventory 175 Purchase 510 Less Sales 536 Ending Inventory 149 cost of goods sold 141774 cost of the ending inventory 149*291 43359 Sales 217730 Margin 75956 gross profit margin 34.89%