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Ayayai Outdoor Stores Inc. uses a perpetual inventory system and has a beginning inventory, as at April 1, of 153 tents. This consists of 50 tents at a cost of $209 each and 103 tents at a cost of $223 each. During April, the company had the following purchases and sales of tents: Date Apr. 3 10 17 24 30 Purchases Units Unit Cost 192 315 $273 293 Cost of the ending inventory Gross profit Gross profit margin $ $ Sales Units Unit Price 72 $430 Determine the cost of goods sold and the cost of the ending inventory using FIFO. Cost of goods sold $ 237 205 430 430 Calculate Ayayai Outdoors's gross profit and gross profit margin for the month of April. (Round gross profit margin to 1 decimal place, e.g. 1.2 and gross profit to the nearest whole dollar, e.g. 5,275.) Is the gross profit determined in part (b) higher or lower than it would be if Ayayai Outdoors had used the average cost formula? The gross profit is than if the average cost formula had been used in a perpetual inventory system because cost of goods sold is +, the average cost formula. Under FIFO, ending inventory is # , cost of goods sold is and gross profit is under FIFO in a period of prices than it would be using

Ayayai Outdoor Stores Inc. uses a perpetual inventory system and has a beginning inventory, as at April 1, of 153 tents. This consists of 50 tents at a cost of $209 each and 103 tents at a cost of $223 each. During April, the company had the following purchases and sales of tents: Date Apr. 3 10 17 24 30 Purchases Units Unit Cost 192 315 $273 293 Cost of the ending inventory Gross profit Gross profit margin $ $ Sales Units Unit Price 72 $430 Determine the cost of goods sold and the cost of the ending inventory using FIFO. Cost of goods sold $ 237 205 430 430 Calculate Ayayai Outdoors's gross profit and gross profit margin for the month of April. (Round gross profit margin to 1 decimal place, e.g. 1.2 and gross profit to the nearest whole dollar, e.g. 5,275.) Is the gross profit determined in part (b) higher or lower than it would be if Ayayai Outdoors had used the average cost formula? The gross profit is than if the average cost formula had been used in a perpetual inventory system because cost of goods sold is +, the average cost formula. Under FIFO, ending inventory is # , cost of goods sold is and gross profit is under FIFO in a period of prices than it would be using

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ayayai Outdoor Stores Inc. uses a perpetual inventory system and has a beginning inventory, as at April 1, of 153 tents. This consists of 50 tents at a cost of $209 each and 103 tents at a cost of $223 each. During April, the company had the following purchases and sales of tents: Date Apr. 3 10 17 24 30 Purchases Units Unit Cost 192 315 $273 293 Cost of the ending inventory Gross profit Gross profit margin $ $ Sales Units Unit Price 72 $430 Determine the cost of goods sold and the cost of the ending inventory using FIFO. Cost of goods sold $ 237 205 430 430 Calculate Ayayai Outdoors's gross profit and gross profit margin for the month of April. (Round gross profit margin to 1 decimal place, e.g. 1.2 and gross profit to the nearest whole dollar, e.g. 5,275.) Is the gross profit determined in part (b) higher or lower than it would be if Ayayai Outdoors had used the average cost formula? The gross profit is than if the average cost formula had been used in a perpetual inventory system because cost of goods sold is +, the average cost formula. Under FIFO, ending inventory is # , cost of goods sold is and gross profit is under FIFO in a period of prices than it would be using
Transcribed Image Text:Ayayai Outdoor Stores Inc. uses a perpetual inventory system and has a beginning inventory, as at April 1, of 153 tents. This consists of 50 tents at a cost of $209 each and 103 tents at a cost of $223 each. During April, the company had the following purchases and sales of tents: Date Apr. 3 10 17 24 30 Purchases Units Unit Cost 192 315 $273 293 Cost of the ending inventory Gross profit Gross profit margin $ $ Sales Units Unit Price 72 $430 Determine the cost of goods sold and the cost of the ending inventory using FIFO. Cost of goods sold $ 237 205 430 430 Calculate Ayayai Outdoors's gross profit and gross profit margin for the month of April. (Round gross profit margin to 1 decimal place, e.g. 1.2 and gross profit to the nearest whole dollar, e.g. 5,275.) Is the gross profit determined in part (b) higher or lower than it would be if Ayayai Outdoors had used the average cost formula? The gross profit is than if the average cost formula had been used in a perpetual inventory system because cost of goods sold is +, the average cost formula. Under FIFO, ending inventory is # , cost of goods sold is and gross profit is under FIFO in a period of prices than it would be using
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