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Question 4 Mr Peter is using a perpetual inventory system since the information on inventory quantity and availability is updated on a continuous/real-time basis under this system. The business of Mr Peter is comparatively new, and he decided to sell only one type of shirt. Further, Mr Peter uses the FIFO cost flow assumption to manage the inventory. Table 1 below presents the inventory and sales record for Mr Peter for February 20X3. Table 1. Inventory Record of Mr Peter Date Units Purchased 2 1 215 units at $11 7 11 19 28 9 16 24 729 units at $12 486 units at $14 1 215 units at $13 162 units at $15 Unit Sold b) Cost of closing inventory c) The gross profit 243 1458 567 Selling price per unit (S) 15 15 17 Required: Based on the above information, calculate the following for February 20X3: a) Cost of goods sold (COGS)

Question 4 Mr Peter is using a perpetual inventory system since the information on inventory quantity and availability is updated on a continuous/real-time basis under this system. The business of Mr Peter is comparatively new, and he decided to sell only one type of shirt. Further, Mr Peter uses the FIFO cost flow assumption to manage the inventory. Table 1 below presents the inventory and sales record for Mr Peter for February 20X3. Table 1. Inventory Record of Mr Peter Date Units Purchased 2 1 215 units at $11 7 11 19 28 9 16 24 729 units at $12 486 units at $14 1 215 units at $13 162 units at $15 Unit Sold b) Cost of closing inventory c) The gross profit 243 1458 567 Selling price per unit (S) 15 15 17 Required: Based on the above information, calculate the following for February 20X3: a) Cost of goods sold (COGS)

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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Question 4 Mr Peter is using a perpetual inventory system since the information on inventory quantity and availability is updated on a continuous/real-time basis under this system. The business of Mr Peter is comparatively new, and he decided to sell only one type of shirt. Further, Mr Peter uses the FIFO cost flow assumption to manage the inventory. Table 1 below presents the inventory and sales record for Mr Peter for February 20X3. Table 1. Inventory Record of Mr Peter Date Units Purchased 1 215 units at $11 729 units at $12 486 units at $14 1 215 units at $13 162 units at $15 2 7 11 19 28 9 16 24 Unit Sold 243 1 458 567 Selling price per unit (S) 15 15 17 Required: Based on the above information, calculate the following for February 20X3: a) Cost of goods sold (COGS) b) Cost of closing inventory c) The gross profit
Transcribed Image Text:Question 4 Mr Peter is using a perpetual inventory system since the information on inventory quantity and availability is updated on a continuous/real-time basis under this system. The business of Mr Peter is comparatively new, and he decided to sell only one type of shirt. Further, Mr Peter uses the FIFO cost flow assumption to manage the inventory. Table 1 below presents the inventory and sales record for Mr Peter for February 20X3. Table 1. Inventory Record of Mr Peter Date Units Purchased 1 215 units at $11 729 units at $12 486 units at $14 1 215 units at $13 162 units at $15 2 7 11 19 28 9 16 24 Unit Sold 243 1 458 567 Selling price per unit (S) 15 15 17 Required: Based on the above information, calculate the following for February 20X3: a) Cost of goods sold (COGS) b) Cost of closing inventory c) The gross profit
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