Q28PGA_1 Fit Gym began January with merch... [FREE SOLUTION]

Chapter 6: Q28PGA_1 (page 367)

Fit Gym began January with merchandise inventory of 78 crates of vitamins that cost a total of $4,290. During the month, Fit Gym purchased and sold merchandise on account as follows:
Jan. 5 Purchase 156 crates @ $ 64 each
13 Sale 180 crates @ $ 100 each
18 Purchase 114 crates @ $ 75 each
26 Sale 150 crates @ $ 116 each
Requirements
1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company鈥檚 cost of goods sold, ending merchandise inventory, and gross profit.

Expert verified

Cost of goods sold: $21,471

Ending Inventory: $1,350

Gross Profit: $13,929

Step 1: Perpetual inventory table under the FIFO method

$Total Revenue = Sale value of 13 th January + Sale value of 26 th January = (180 脳 $ 100) + (150 脳 $ 116) = $ 18, 000 + $ 17, 400 = $ 35, 400$

$Gross Profit = Total Revenue - Cost of goods sold = $ 35, 400 - $ 21, 471 = $ 13, 929$

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