CC6 COOKIE CREATIONS
(a)
COST OF GOODS AVAILABLE FOR SALE
Date
Explanation
Units
Unit Cost
Total Cost
Feb. 1
Beginning Inventory
3
$595
$1,785
Feb. 2
Purchase
2
600
1,200
Mar. 2
Purchase
1
Apr. 1
Purchase
2
May 4
Purchase
625
Total
$6,702
(b)
LIFO
Ending Inventory
Cost of Goods Sold
Date
Unit Cost
Cost
available for sale
$6,702
Feb. 1
$595
Feb. 2
Total
Cost of goods
Gross Profit
Gross Profit Rate
Sales
$8,050*
$3,733
46.37%
Less: Cost of goods sold
Gross profit
$3,733
CC6 (Continued)
FIFO
Ending Inventory
Cost of Goods Sold
Date
Units
Unit Cost
Total
Cost
Cost of goods
available for sale
$6,702
May 4
3
$625
$1,875
Less: Ending inventory
2,487
Apr. 1
4
$2,487
Gross Profit
Gross Profit Rate
Sales
$8,050
$3,835
47.64%
Less: Cost of goods sold
Gross profit
$3,835
Average Cost
Ending Inventory
Cost of Goods Sold
$6,702/11 = $609.273
Cost of goods
available for sale
$6,702.00
$2,437.09
Units
Total
4
Gross Profit
Gross Profit Rate
Sales
$8,050.00
$3,785.09
47.02%
Less: Cost of goods sold
4,264.91
Gross profit
$3,785.09