h. 025,000 d. Question 1O: Big Data reports the following information regarding

Question

h. 025,000 d. Question 1O: Big Data reports the following information regarding merchandise itn its store's inventory for the month of October. Assume that Big Data uses the periodic system and that 230 units of merchandise were on hand on October 31. Date October 1 October 8 October 16 October 24 Explanation Units Unit Cost Total Cost Inventory Purchase Purchase Purchase 200 300 500 100 $60 12,000 21,000 45,000 10,000 70 90 100 What is the cost of goods available for sale for October? a b How many units of inventory were available for sale during October? c What is the cost of ending inventory under FIFO d How much is cost of goods sold under LIFO? e If Big Data has sales of $128,000 in October and uses the weighted average method, how much is the gross profit for October?

Explanation / Answer

Required information is as calculated below:

Date Explanation Units Unit Cost Cost Oct-01 Opening Inventory 200 60.00 12,000 Oct-08 Purchased Inventory 300 70.00 21,000 Oct-16 Purchased Inventory 500 90.00 45,000 Oct-24 Purchased Inventory 100 100.00 10,000 (a) Cost of goods available for sale 88,000 (b) Units available for sale 1,100 (c ) Cost of ending inventory 230 21,700 100 100 10000 130 90 11700 230 21700 (d) Cost of goods sold under LIFO 870 73,900 100 100 10000 500 90 45000 270 70 18900 870 73900 (e ) Gross profit for October Sales 128,000 Less: Cost of goods sold (870*80) 69,600 Gross profit for October 58,400

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