Question Completion:
The beginning inventory of merchandise at Keats Office Supplies and data on purchases and sales for a three-month period are as follows:
Date Transaction No. of Units Per Unit Total
March 3 Inventory 66 $225 $14,850
March 8 Purchase 132 270 35,640
March 11 Sale 88 750 66,000
March 30 Sale 55 750 41,250
April 8 Purchase 110 300 33,000
April 10 Sale 66 750 49,500
April 19 Sale 33 750 24,750
April 28 Purchase 110 330 36,300
May 5 Sale 66 790 52,140
May 16 Sale 88 790 69,520
May 21 Purchase 198 360 71,280
May 28 Sale 99 790 78,210
Answer:
Keats Office Supplies
Total sales (495 units) = $381,370
Cost of goods sold $147,510
Gross profit $233,860
Explanation:
a) Data and Calculations:
Date Transaction No. of Units Per Unit Costs Revenue
March 3 Inventory 66 $225 $14,850
March 8 Purchase 132 270 35,640
March 11 Sale -88 750 66,000
March 30 Sale -55 750 41,250
April 8 Purchase 110 300 33,000
April 10 Sale -66 750 49,500
April 19 Sale -33 750 24,750
April 28 Purchase 110 330 36,300
May 5 Sale -66 790 52,140
May 16 Sale -88 790 69,520
May 21 Purchase 198 360 71,280
May 28 Sale -99 790 78,210
Total:
Cost of goods available 616 -495 = 121 $191,070 $381,370
May 31 Ending Inventory, using FIFO = 121 units 360 $43,560
Cost of goods sold = Cost of goods available for sale Minus Ending Inventory = $191,070 - $43,560 = $147,510
