A Swoosh Sports outlet store began December 2021 with 47 pairs of running shoes that cost the store $34 each. The sale price of these shoes was $63. During December, the store completed. these inventory transactions: (Click the icon to view the inventory transactions.) Read the requirements. Requirement 1. The preceding data are taken from the store's perpetual inventory records. Which cost method does the store use? Explain how you arrived at your answer. Swoosh Sports uses FIFO This is apparent from the flow of costs out of inventory. For example, the December 13 sale shows unit cost of $34, which came from the beginning inventory FIFO, and only FIFO, works. Requirement 2. Determine the store's cost of goods sold for December. Also compute gross The cost of goods sold is $ 3,110 The gross profit for December is $2,539 Requirement 3. What is the cost of the store's December 31 inventory of running shoes? The cost of the company's inventory at December 31 is 2106 Data table Dec 2 Dec 9 Dec 13 Dec 18 Dec 22 Dec 29 Sale Purchase Sale Sale Sale Purchase Print Units 20 82 27 11 31 27 Unit Cost $ Done . This is how Unit Sales Price 34 $ 36 34 36 36 38 63 63 64 64 - X

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A Swoosh Sports outlet store began December 2021 with 47 pairs of running shoes that cost the store $34 each. The sale price of these shoes was $63. During December, the store completed
these inventory transactions:
(Click the icon to view the inventory transactions.)
Read the requirements.
Requirement 1. The preceding data are taken from the store's perpetual inventory records. Which cost method does the store use? Explain how you arrived at your answer.
Swoosh Sports uses FIFO
This is apparent from the flow of costs out of inventory. For example, the December 13 sale shows unit cost of $34, which came from the beginning inventory
FIFO, and only FIFO,
works.
Requirement 2. Determine the store's cost of goods sold for December. Also compute gross
The cost of goods sold is $ 3,110
The gross profit for December is $ 2,539
Requirement 3. What is the cost of the store's December 31 inventory of running shoes?
The cost of the company's inventory at December 31 is
2106
Data table
Dec 2
Dec 9
Dec 13
Dec 18
Dec 22
Dec 29
Sale
Purchase
Sale
Sale
Sale
Purchase
Print
Units Unit Cost
20
34 $
82
36
27
34
11
36
31
36
27
38
SA
Done
. This is how
Unit Sales
Price
63
63
64
64
X
al check
Transcribed Image Text:A Swoosh Sports outlet store began December 2021 with 47 pairs of running shoes that cost the store $34 each. The sale price of these shoes was $63. During December, the store completed these inventory transactions: (Click the icon to view the inventory transactions.) Read the requirements. Requirement 1. The preceding data are taken from the store's perpetual inventory records. Which cost method does the store use? Explain how you arrived at your answer. Swoosh Sports uses FIFO This is apparent from the flow of costs out of inventory. For example, the December 13 sale shows unit cost of $34, which came from the beginning inventory FIFO, and only FIFO, works. Requirement 2. Determine the store's cost of goods sold for December. Also compute gross The cost of goods sold is $ 3,110 The gross profit for December is $ 2,539 Requirement 3. What is the cost of the store's December 31 inventory of running shoes? The cost of the company's inventory at December 31 is 2106 Data table Dec 2 Dec 9 Dec 13 Dec 18 Dec 22 Dec 29 Sale Purchase Sale Sale Sale Purchase Print Units Unit Cost 20 34 $ 82 36 27 34 11 36 31 36 27 38 SA Done . This is how Unit Sales Price 63 63 64 64 X al check
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