Question: Assume a Watercrest Sports outlet store began October 2020 with 47 pairs of water skis that cost the store $38 each. The sale price of these water skis was $67. During October, the store completed these inventory transactions: 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 under the periodic inventory system. Assume the FIFO method. The Answer: Cost of goods sold: (image) For the part, Sales [(47 units x $67)+(44 units x $68)] I don't understand what is in bolded, please explain where you get the numbers incuding the ones in dollars please. 3. What is the cost of the store’s October 31 inventory of water skis? The Answer: Cost of October 31 inventory (39 × $40) + (24 × $42) Please explain what is in bolded, how you get those numbers including the ones in dollars, because I don't understand.
Question: Assume a Watercrest Sports outlet store began October 2020 with 47 pairs of water skis that cost the store $38 each. The sale price of these water skis was $67. During October, the store completed these inventory transactions:
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 under the periodic inventory system. Assume the FIFO method.
The Answer: Cost of goods sold: (image)
For the part, Sales [(47 units x $67)+(44 units x $68)] I don't understand what is in bolded, please explain where you get the numbers incuding the ones in dollars please.
3. What is the cost of the store’s October 31 inventory of water skis?
The Answer: Cost of October 31 inventory (39 × $40) + (24 × $42)
Please explain what is in bolded, how you get those numbers including the ones in dollars, because I don't understand.
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