Urban Glam Cosmetics made purchases of lipstick in the current year as follows Jan. 1 Beginning inventory Mar. 14 Purchased 77 units @$13.00 - $1,001 260 units $14.00- July 30 Purchased 510 units @ $15.00 Units available for sale 847 units Cost of goods available for sale Jan, 10: 71 units froe beginning inventory Mar 1514 units from beginning inventory, and 106 units from the March 14 purchase units from the March 14 purchase, and 409 units from the July 30 purchase Oct. 51 51 3,640 7,650 Urban Glam Cosmetics made sales on the following dates at a selling price of $36 per unit Assume that Urban Glam Cosmetics uses the specific identification method to cost inventory. The 721 units were specifically sold as follows Calculate cost of goods sold and the gross profit $12,291

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

Hh1.

 

Urban Glam Cosmetics made purchases of lipstick in the current year as follows
Jan. 1 Beginning inventory
Mar. 14 Purchased
July 30 Purchased i
Units available for sale
Cost of goods available for sale
Jan. 10: 71 units from beginning inventory
Mar. 151
Oct. 51
Urban Glam Cosmetics made sales on the following dates at a selling price of $36 per unit
Assume that Urban Glam Cosmetics uses the specific identification method to cost inventory. The 721 units were specifically sold as
follows
$1,001
77 units @$13.00
260 units @$14.00 . 3,640
510 units @ $15.00 7,650
847 units
4 units from beginning inventory, and
106 units from the March 14 purchase
51 units from the March 14 purchase, and
409 units from the July 30 purchase
Calculate cost of goods sold and the gross profit.
Cost of goods sold
Gross profit
$12,291
Transcribed Image Text:Urban Glam Cosmetics made purchases of lipstick in the current year as follows Jan. 1 Beginning inventory Mar. 14 Purchased July 30 Purchased i Units available for sale Cost of goods available for sale Jan. 10: 71 units from beginning inventory Mar. 151 Oct. 51 Urban Glam Cosmetics made sales on the following dates at a selling price of $36 per unit Assume that Urban Glam Cosmetics uses the specific identification method to cost inventory. The 721 units were specifically sold as follows $1,001 77 units @$13.00 260 units @$14.00 . 3,640 510 units @ $15.00 7,650 847 units 4 units from beginning inventory, and 106 units from the March 14 purchase 51 units from the March 14 purchase, and 409 units from the July 30 purchase Calculate cost of goods sold and the gross profit. Cost of goods sold Gross profit $12,291
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education