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Gulf Trading Company reported the following January purchases and sales data for its only product for the month of January 2021. Units Sold at Retail Date Jan 1 Beginning inventory. Sales Jan 10 Jan 20 Jan 25 Jan 30 Purchase Sales Purchase. Totals.. Activities Units Acquired at Cost 140 units @ $6.00-$340 60 units @ $5.00- 180 units @ $4.50- 300 810 $1.950 100 units @ $15 30 units @ $15 180 units Required: You have to use "FIFO" and "Average Method" and calculate the following: a) Calculate cost of ending inventory on Jan 31, 2021. b) Calculate cost of goods sold for the period ending on Jan 31, 2021, c) Calculate gross profit for the period ending on Jan 31", 2021.

Gulf Trading Company reported the following January purchases and sales data for its only product for the month of January 2021. Units Sold at Retail Date Jan 1 Beginning inventory. Sales Jan 10 Jan 20 Jan 25 Jan 30 Purchase Sales Purchase. Totals.. Activities Units Acquired at Cost 140 units @ $6.00-$340 60 units @ $5.00- 180 units @ $4.50- 300 810 $1.950 100 units @ $15 30 units @ $15 180 units Required: You have to use "FIFO" and "Average Method" and calculate the following: a) Calculate cost of ending inventory on Jan 31, 2021. b) Calculate cost of goods sold for the period ending on Jan 31, 2021, c) Calculate gross profit for the period ending on Jan 31", 2021.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Homework Question no. 1: - Ahmed Co incurred the following transactions during the month of December 2020. December 1: Beginning Inventory (100 units @ 5.00 per unit). December 6: Purchased 50 units @ 5.25 per unit. December 10: Purchased 30 units @ 5.50 per unit. December 13: Sold 140 units. December 15 Sold 25 units. December 19 Purchased 120 units @ 6.00 per unit. December 31: Sold 70 units. Required: You have to use "FIFO" and "Average Method" and calculate the following: i. Calculate cost of ending inventory on December 31, 2020 ii. Calculate cost of goods sold for the period ending on December 31, 2020 Homework Question no. 2: - Gulf Trading Company reported the following January purchases and sales data for its only product for the month of January 2021. Units Sold at Retail Date Activities Jan. 1 Beginning inventory Jan Sales 10 Jan 20 Jan 25 Jan 30 Purchase. Sales.. Purchase Totals Units Acquired at Cost 140 units @ $6.00-$ 840 60 units @ $5.00- 300 180 units @ $4.50- 810 300 units $1.950 100 units @ $15 80 units @ $15 180 units Required: You have to use "FIFO" and "Average Method" and calculate the following: a) Calculate cost of ending inventory on Jan 31, 2021. b) Calculate cost of goods sold for the period ending on Jan 31", 2021, c) Calculate gross profit for the period ending on Jan 31, 2021.
Transcribed Image Text:Homework Question no. 1: - Ahmed Co incurred the following transactions during the month of December 2020. December 1: Beginning Inventory (100 units @ 5.00 per unit). December 6: Purchased 50 units @ 5.25 per unit. December 10: Purchased 30 units @ 5.50 per unit. December 13: Sold 140 units. December 15 Sold 25 units. December 19 Purchased 120 units @ 6.00 per unit. December 31: Sold 70 units. Required: You have to use "FIFO" and "Average Method" and calculate the following: i. Calculate cost of ending inventory on December 31, 2020 ii. Calculate cost of goods sold for the period ending on December 31, 2020 Homework Question no. 2: - Gulf Trading Company reported the following January purchases and sales data for its only product for the month of January 2021. Units Sold at Retail Date Activities Jan. 1 Beginning inventory Jan Sales 10 Jan 20 Jan 25 Jan 30 Purchase. Sales.. Purchase Totals Units Acquired at Cost 140 units @ $6.00-$ 840 60 units @ $5.00- 300 180 units @ $4.50- 810 300 units $1.950 100 units @ $15 80 units @ $15 180 units Required: You have to use "FIFO" and "Average Method" and calculate the following: a) Calculate cost of ending inventory on Jan 31, 2021. b) Calculate cost of goods sold for the period ending on Jan 31", 2021, c) Calculate gross profit for the period ending on Jan 31, 2021.
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