lILyplus.com/edugen/student/mainfr.uni e,, dy & Practice n Assignment Assignment

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lILyplus.com/edugen/student/mainfr.uni e,, dy & Practice n Assignment Assignment Gradebook ORION Downloadable eTextbook RCES Problem 6-5A Your answer is partially correct. Try again. You are provided with the following information for Bonita Ltd. for the month ended October 31, 2017. Bonita uszes a periodic method for Inventory October 1 Beginning inventory October 9 Purchase October 11 Sale October 17 Purchase October 22 Sale October 25 Purchase C27 29 38 30 43 31 43 180 150 105 98 120 180 dy October 29 Sale Calculate () ending inventory, (i) cost of goods sold, () gross profit, and (iv) gross profit rate under each of the following methods. (1) FIFO (2 Average-cost. Round Gross profit rate to 1 decinal place, e g. 21.5% and all other answers to o decimal places eg. 2,150 Round average unit e.g. 25.167.) 1965.333 The ending inventory The cost of goods solkd Gross profit Gross profit rate 2881 11639 12554.66 1654.667 15.18 41.860 ey & Sons, Ins. All Rights Reserved. A Division of Policy I

Explanation / Answer

FIFO Average cost The ending inventory: 67*$31 = 2077 67*29.333 = 1965 The cost of goods sold: 14520-2077 = 12443 14520-1965 = 12555 Gross profit: 17654-12443 = 5211 17654-12555 = 5099 Gross profit rate: 5211/17654 = 29.5% 5099/17654 = 28.9% WORKINGS: Units Rate Total October 1 Beginning inventory 90 27 2430 Purchases: 0 9-Oct 180 29 5220 17-Oct 105 30 3150 25-Oct 120 31 3720 495 14520 Sales quantity = 150+98+180 = 428 Ending inventory in units 67 Average rate = 14520/495 = $         29.333 Sales revenue = 150*38+98*43+180*43 = $         17,654

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