Chapter 6A, Problem 5P

(Compute cost of goods sold and gross profit on sales—periodic system) Assume a Championship outlet store began July 2018 with 52 units of inventory that cost $18 each. The sales price of these units was $75. During July, the store completed these inventory transactions:

Requirements

  1.    Determine the store’s cost of goods sold for July under the periodic inventory system. Assume the FIFO method.

  2.    Compute the store’s gross profit for July.