Breast Actives Accounting Ohsweken Outdoor Stores Inc. Uses A P Return to Blackh
ID: 2569024 • Letter: B
Question
Breast Actives Accounting Ohsweken Outdoor Stores Inc. Uses A P Return to Blackhoard Wiley PLUS meyFinancial Accounting, Seventh Canadian Edition PRINTER VERSION ·BACK NEXT ASSIGNMENT RE SOURCES Exercise 6-4 210 each and 98 tents at a cost of S225 each. Du ng April, the company had Grouper Outdoor Stores Inc. uses a perpetual inventory system and has a beginning inventory, as at April 1, of 149 tents. This consists of 51 tents at a cost of the following purchases and sales of tents: Exerciae 6-5 Problem 5-3A Date Units Unit Cost Units Unit Price $420 Apr. 3 79 Revicw Score Review Results by Study 10 205 17 24 307 30 $272 261 420 289 200 420 Determine the cost of goods saold and the cost of the ending inventory using FIFO. Cost af goods sold Cost af the ending inventory LINK TO TEXT LINK TO TEXT Calcu ate Grouper Outdoors's grcss profit and gress profit margin for the month of April. (Round gross profit margin to 1 decimal place, eg. 1.2 and gross profit to the nearest whole dolar, e.g. 5,275.) Gross praft Gross profit margin LINK TO TEXT K TO TEXT Is the gross profit determined in part (b) higher or lower than it wouid be it Grouper Outdoors had used the average cost formuls? than if the average cost formula had been used in a perpetual inventory system because cost of gcods sold is under FIFO in a period of prices than it wouid be using the average cost The gross profit is formula. Under FIFO, ending inventory is ., cost of goods sold is and gross profit is ' . LINK TO TEXT K TO TEXT Question Attempts: O of 3 used SAVE FOR LATER SUBMIT ANSWERExplanation / Answer
FIFO DATE Cost of goods available for sale Cost of Goods sold Closing inventory Units Rate Amount Units Rate Amount Units Rate Amount Beginning Inventory 51 210 10710 98 225 22050 3-Apr 51 210 10710 28 225 6300 70 225 15750 10-Apr 205 272 55760 70 225 15750 205 272 55760 17-Apr 70 225 15750 191 272 51952 14 272 3808 24-Apr 307 289 88723 14 272 3808 307 289 88723 30-Apr 14 272 3808 186 289 53754 121 289 34969 540 142,274 121 34,969 Req : Cost of goods sold 142,274 Ending inventory cost 34969 Req : Total Sales (540 units @ 420) 226800 Less: COGS 142274 Gross profit 84526 Gross profit margin = Gross profit/ Sales *100 84526 / 226800 *100 =37.27% Req : The Gross profit is HIGHER than average cost formula used in perpetual inventory system because Cost of goods sold is LOWER under FIFO in a period of RISING prices. Under FIFO, ending Inventory $ 34969; Cost of goods sold $ 142,274 and Gross profit $ 84,526