Q37PGB_2 Right Now Electronic Center bega... [FREE SOLUTION]

Chapter 6: Q37PGB_2 (page 372)

Right Now Electronic Center began October with 100 units of merchandise inventory that cost $70 each. During October, the store made the following purchases:
Oct. 3 35 units @ $ 82 each
12 45 units @ $ 84 each
18 75 units @ $ 90 each
Right Now uses the periodic inventory system, and the physical count at October 31indicates that 130 units of merchandise inventory are on hand.
Requirements
2. Net sales revenue for October totaled $26,000. Compute Right Now鈥檚 gross profitfor October using each method.

Expert verified

Gross profit under 鈥�

FIFO:$16,950

LIFO:$15,060

Weighted Average:$16,000

$Grossmargin=TotalRevenue-COGS =$26,000-$9,050 =$16,950$

$Grossmargin=TotalRevenue-COGS =$26,000-$10,940 =$15,060$

$Grossmargin=TotalRevenue-COGS =$26,000-$10,000 =$16,000$

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	2019	2018	2017
Net Sales Revenue	\( 212,000	\) 161,000	\( 170,000
Cost of Goods Sold:
Beginning Merchandise Inventory	\)22,000	\(28,000	\)41,000
Net cost of purchase	131,000	100,000	86,000
Cost of goods available for sale	153,000	128,000	127,000
Less: Ending Merchandise Inventory	34,000	22,000	28,000
Cost of goods sold	119,000	106,000	99,000
Gross Profit	93,000	55,000	71,000
Operating Expenses	63,000	28,000	39,000
Net Income	\( 30,000	\) 27,000	$ 32,000