Valix Finacc vol 1 Problem 7- 24

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 7-24

Sales                                                                                                                       6,000,000

Gross profit                                                                                                            (2,400,000)

Cost of goods sold                                                                                                 3,600,000

Inventory – July 31 (see below)                                                                                  928,000

Cost of goods available for sale                                                                          4,528,000

Purchases for July                                                                                                  (3,174,000)

Inventory – July 1                                                                                                    1,354,000

                                                                             Quantity             Unit cost          Total cost

July 12                                                                      1,000                    60                    60,000

       25                                                                    14,000                    62                  868,000

FIFO inventory – July 31                                          15,000                                          928,000