Chapter 6, Problem 6.70BP

LO 2

(Learning Objective 2: Apply various inventory costing methods) A Swoosh Spots outlet store began December 2018 with 47 pairs of running shoes that cost the store $34 each. The sales price of these shoes was $63. During December, the store completed these inventory transactions:

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 December. Also compute gross profit for December.

  3.    What is the cost of the store’s December 31 inventory of running shoes?