Answer:
Bramble Company
The gross profit for the month is:
$2,588.50
Explanation:
a) Data and Calculations:
Selling price = $12
Date Units Per unit price Total Balance,
Beginning Inventory 1/1/18 200 $6.00 $1,200
Purchase, 1/15/18 70 5.30 371
Purchase, 1/28/18 70 5.40 378
Cost of goods available 340 $1,949
Calculating the cost of goods available for sale allocated to, using FIFO:
Ending inventory 1/31/18 85 (70 * $5.40 + 15 * $5.30) = $457.50
Cost of goods sold, 255 units ($6.00 * 200 + 55 * $5.30) $1,491.50
Income Statement, December 31, 2018:
Sales Revenue = ($12 * 340) $4,080.00
Cost of goods sold 1,491.50
Gross profit $2,588.50
