Q28PGA_3 Fit Gym began January with merch... [FREE SOLUTION]

Chapter 6: Q28PGA_3 (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
3. Prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company鈥檚 cost of goods sold, ending merchandise inventory, and gross profit. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.)

Expert verified

Cost of goods sold: $21,555

Ending Inventory: $1,278

Gross Profit: $13,845

Step 1: Perpetual inventory table under the weighted average method

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

$Gross Profit = Total revenue - Cost of goods sold = $ 35, 400 - $ 21, 555 = $ 13, 845$

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