The Boxwood Company sells blankets for $38.00 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
Date Blankets Units Cost
May 03 Purchase 29 $16.00
May 10 Sale 12
May 17 Purchase 38 $18.00
May 20 Sale 15
May 23 Sale 10
May 30 Purchase 40 $19.00
Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method.

Respuesta :

Answer:

Gross Profit for May           798

Explanation:

under FIFO

We need to use units from the beginning of the month first.

May 10th sale 12 x $16 = 192

May 20th sale 15 x $16 = 240

May 23th

2 x $16 = 32

8x 1$8 =144

Total COGS

608

Sales Revenue 37 x 38 = 1,406

Cost of Good Sold            (608)

Gross Profit for May           798