Breast Actives Accounting Ohsweken Outdoor Stores Inc. Uses A P Return to Blackh
ID: 2569030 • 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 6-5 Lab & Ch G FA 17 Ayayal Furniture Ltd. usesa perpetual Inventory system and has a beginning inventory, as at June 1, of 500 bookcases at a cost of $123 each. During June, the company had the fallowing purchases and sales of bookcases: Purchases Units Unit cost Units Unit price June 6 1,160 25 Revicw Score Review Results by Study 10 14 1,850 16 25 990 960 S218 126 1,520 223 127 Determine the cost of goods sold and the cost of the ending inventory using the average cost formula. (Use unrounded numbers for average cost calculations. Round answers to 2 decimal places, e.g 5.52.) Cost of goods sold Cost of the ending inventory LINK TO TEXT Calcu ate Ayayal Furniture's gross proft and gross proft margin for the month of June. (Round gross profit margin to 1 decimal place, e.g. 15.1 and gross profit to the nearest whole doilar, e.g. 1525.) Gross prof Gross proft margin LINK TO TEXT Is the gross prafit determined in part (b) higher or lower than it would be ifAyayal Furniture had used the FIFO? The gross profit is than it would be using the FIFO cost method because the cost of the product being purchased is Question Attempts: 0 of 3 used SAVE FOR LATER MIT ANSWERExplanation / Answer
Goods Purchased Cost of Goods Sold Inventory Balance Date No of units cost per unit Total costs No of units cost per unit Total costs No of units cost per unit Total costs June 1 500 $123 $61,500 June 6 1160 $125 $145,000 1660 $124.4 $206,500 a) June 10 960 $124.4 $119,421.69 700 $124.4 $87,078.31 June 14 1850 $126 $233,100 2550 $125.56 $320,178.31 b) June 16 1520 $125.56 $190,851.39 1030 $125.56 $129,326.93 June 26 990 $127 $125,730 2020 $126.27 $255,056.93 c) Total $310,273.07 a) 500 $123 $61,500 1160 $125 $145,000 1660 $124.4 $206,500 Average price = $206,500/1660 = 124.4 b) 700 $124.4 $87,078.31 1850 $126 $233,100 2550 $125.56 $320,178.31 Average price = $320,178.31/2550 =125.56 c) 1030 $125.56 $129,326.93 990 $127 $125,730 2020 $126.27 $255,056.93 Average Price = $255,056.93/2020 126.27 Cost of good Sold = $310,273.07 Ending Inventory = $255,056.93 Gross Profit = Sales - COGS = Sales =[ (960 x 218 ) + (1520 x 223)] $548,240 GP = $548,240 - $310,273.07 $237,966.93 Gross Profit margin = GP/ Sales 43.41% Higher and less.