Question

During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 53 $ 45 $ 2,385 Apr. 7 Purchase 133 47 6,251 Jul. 16 Purchase 203 50 10,150 Oct. 6 Purchase 113 51 5,763 502 $ 24,549 For the entire year, the company sells 433 units of inventory for $63 each. Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit

Answer 1

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Jan. 1: Beginning inventory 53 units at $45

Apr. 7: Purchase 133 units at $47

Jul. 16: Purchase 203 units at $50

Oct. 6: Purchase 113 units at $51

The company sells 433 units of inventory for $63 each.

Under FIFO (first-in, first-out), the ending inventory cost is calculated using the purchasing cost of the last units bought.

First, we need to calculate the ending inventory in units:

Ending inventor in units= total units - units sold

Ending inventory in units= 502 - 433= 69 units

A) Ending inventory= 69*$51= $3,519

B) Cost of goods sold= 53*45 + 133*47 + 203*50 + 44*51= $21,030

C) Sales revenue= 433*63= $27,279

D) Gross profit= sales revenue - cost of goods sold

Gross profit= 27,279 - 21,030= $6,249