(Learning Objective 2: Apply various inventory costing methods) A Gold MedalSports outlet store began August 2018 with 42 pairs of running shoes that cost the store $31each. The sales price of these shoes was $63. During August, the store completed these inventory transactions:Units Unit CostSale ............. 16 $319 Purchase...... 81 33$6313 Sale ............. 26 31 63Sale ............. 33 6422 Sale ............. 36 33 6429 Purchase...... 18 35Aug 218 13Unit Sales PriceRequirements1. The preceding data are taken from the store’s perpetual inventory records. Which costmethod does the store use? Explain how you arrived at your answer.2. Determine the store’s cost of goods sold for August. Also compute gross profit for August.3. What is the cost of the store’s August 31 inventory of running shoes?
(Learning Objective 2: Apply various inventory costing methods) A Gold Medal
Sports outlet store began August 2018 with 42 pairs of running shoes that cost the store $31
each. The sales price of these shoes was $63. During August, the store completed these inventory transactions:
Units Unit Cost
Sale ............. 16 $31
9 Purchase...... 81 33
$63
13 Sale ............. 26 31 63
Sale ............. 33 64
22 Sale ............. 36 33 64
29 Purchase...... 18 35
Aug 2
18 13
Unit Sales Price
Requirements
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.
2. Determine the store’s cost of goods sold for August. Also compute gross profit for August.
3. What is the cost of the store’s August 31 inventory of running shoes?
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