Required information E7-10 Using FIFO for Multiproduct Inventory Transactions (Chapters 6 and 7) [LO 6-3, LO 6-4, LO 7-3] [The following information applies to the questions displayed below.] TrackR, Inc., (Tl) has developed a coin-sized tracking tag that attaches to key rings, wallets, and other items and can be prompted to emit a signal using a smartphone app. TI sells these tags, as well as water-resistant cases for the tags, with terms FOB shipping point. Assume TI has no inventory at the beginning of the month, and it has outsourced the production of its tags and cases. TI uses FIFO and has entered into the following transactions: Jan. 2: TI purchased and received 300 tags from Xioasi Manufacturing (XM) at a cost of $9 per tag, n/15. Jan. 4 TI purchased and received 100 cases from Bachittar Products (BP) at a cost of $2 per case, n/20. Jan. 6: TI paid cash for the tags purchased from XM on Jan. 2. Jan. 8: TI mailed 200 tags via the U.S. Postal Service (USPS) to customers at a price of $30 per tag, on account. my Jan. 11: TI purchased and received 400 tags from XM at a cost of $12 per tag, n/15. te Jan. 14: TI purchased and received 200 cases from BP at a cost of $3 per case, n/20. Jan. 16: TI paid cash for the cases purchased from BP on Jan. 4. Jan. 19: TI mailed 160 cases via the USPS to customers at a price of $10 per case, on account. Jan. 21: TI mailed 300 tags to customers at a price of $30 per tag. 7-10 Part 2 Calculate the dollars of gross profit and the gross profit percentage from selling tags and cases. Which product line yields more dollars of profit? Which product line yields more profit per dollar of sales?
Required information E7-10 Using FIFO for Multiproduct Inventory Transactions (Chapters 6 and 7) [LO 6-3, LO 6-4, LO 7-3] [The following information applies to the questions displayed below.] TrackR, Inc., (Tl) has developed a coin-sized tracking tag that attaches to key rings, wallets, and other items and can be prompted to emit a signal using a smartphone app. TI sells these tags, as well as water-resistant cases for the tags, with terms FOB shipping point. Assume TI has no inventory at the beginning of the month, and it has outsourced the production of its tags and cases. TI uses FIFO and has entered into the following transactions: Jan. 2: TI purchased and received 300 tags from Xioasi Manufacturing (XM) at a cost of $9 per tag, n/15. Jan. 4 TI purchased and received 100 cases from Bachittar Products (BP) at a cost of $2 per case, n/20. Jan. 6: TI paid cash for the tags purchased from XM on Jan. 2. Jan. 8: TI mailed 200 tags via the U.S. Postal Service (USPS) to customers at a price of $30 per tag, on account. my Jan. 11: TI purchased and received 400 tags from XM at a cost of $12 per tag, n/15. te Jan. 14: TI purchased and received 200 cases from BP at a cost of $3 per case, n/20. Jan. 16: TI paid cash for the cases purchased from BP on Jan. 4. Jan. 19: TI mailed 160 cases via the USPS to customers at a price of $10 per case, on account. Jan. 21: TI mailed 300 tags to customers at a price of $30 per tag. 7-10 Part 2 Calculate the dollars of gross profit and the gross profit percentage from selling tags and cases. Which product line yields more dollars of profit? Which product line yields more profit per dollar of sales?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
E7-10 Using FIFO for Multiproduct Inventory Transactions (Chapters 6 and 7) [LO 6-3, LO 6-4, LO 7-3]
[The following information applies to the questions displayed below.]
TrackR, Inc., (TI) has developed a coin-sized tracking tag that attaches to key rings, wallets, and other items and can be
prompted to emit a signal using a smartphone app. TI sells these tags, as well as water-resistant cases for the tags, with
terms FOB shipping point. Assume TI has no inventory at the beginning of the month, and it has outsourced the
production of its tags and cases. TI uses FIFO and has entered into the following transactions:
Jan. 2: TI purchased and received 300 tags from Xioasi Manufacturing (XM) at a cost of $9 per tag, n/15.
Jan. 4: TI purchased and received 100 cases from Bachittar Products (BP) at a cost of $2 per case, n/20.
Jan. 6: TI paid cash for the tags purchased from XM on Jan. 2.
Jan. 8: TI mailed 200 tags via the U.S. Postal Service (USPS) to customers at a price of $30 per tag, on
account.
accounc
TI purchased and received 400 tags from XM at a cost of $12 per tag, n/15.
Jan. 11: TI
Jan. 14: TI purchased and received 200 cases from BP at a cost of $3 per case, n/20.
Jan. 16: TI paid cash for the cases purchased from BP on Jan. 4.
Jan. 19 TI mailed 160 cases via the USPS to customers at a price of $10 per case, on account.
Jan. 21: TI mailed 300 tags to customers at a price of $30 per tag.
7-10 Part 2
. Calculate the dollars of gross profit and the gross profit percentage from selling tags and cases.
. Which product line yields more dollars of profit?
. Which product line yields more profit per dollar of sales?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F888accae-7775-4609-ad9a-8b8d531725bc%2F1e3a50b2-b23b-4c5c-840b-f1a5913f3463%2Fsapauwo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
E7-10 Using FIFO for Multiproduct Inventory Transactions (Chapters 6 and 7) [LO 6-3, LO 6-4, LO 7-3]
[The following information applies to the questions displayed below.]
TrackR, Inc., (TI) has developed a coin-sized tracking tag that attaches to key rings, wallets, and other items and can be
prompted to emit a signal using a smartphone app. TI sells these tags, as well as water-resistant cases for the tags, with
terms FOB shipping point. Assume TI has no inventory at the beginning of the month, and it has outsourced the
production of its tags and cases. TI uses FIFO and has entered into the following transactions:
Jan. 2: TI purchased and received 300 tags from Xioasi Manufacturing (XM) at a cost of $9 per tag, n/15.
Jan. 4: TI purchased and received 100 cases from Bachittar Products (BP) at a cost of $2 per case, n/20.
Jan. 6: TI paid cash for the tags purchased from XM on Jan. 2.
Jan. 8: TI mailed 200 tags via the U.S. Postal Service (USPS) to customers at a price of $30 per tag, on
account.
accounc
TI purchased and received 400 tags from XM at a cost of $12 per tag, n/15.
Jan. 11: TI
Jan. 14: TI purchased and received 200 cases from BP at a cost of $3 per case, n/20.
Jan. 16: TI paid cash for the cases purchased from BP on Jan. 4.
Jan. 19 TI mailed 160 cases via the USPS to customers at a price of $10 per case, on account.
Jan. 21: TI mailed 300 tags to customers at a price of $30 per tag.
7-10 Part 2
. Calculate the dollars of gross profit and the gross profit percentage from selling tags and cases.
. Which product line yields more dollars of profit?
. Which product line yields more profit per dollar of sales?
Transcribed Image Text:Calculate the dollars of gross profit and the gross profit percentage from selling tags and cases. (Round your "Gross Profit
Percentage" answers to 2 decimal places.)
Gross Profit
Gross Profit Percentage
Tags
Cases
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