Whitewater Sports began July with 50 backpacks that cost $19 each. The sale price of each backpack was $36. During July, Whitewater completed these inventory transactions:
|
July 2 |
Purchase |
Units |
Unit Cost |
Unit Sale Price |
|
8 |
Sale |
12 |
$20 |
|
|
13 |
Sale |
37 |
19 |
$36 |
|
Sale |
13 |
19 |
36 |
|
|
17 |
Purchase |
4 |
20 |
37 |
|
22 |
Sale |
24 |
20 |
|
|
15 |
20 |
37 |
Required
1. The preceding data are taken from Whitewater’s perpetual inventory records. Which cost method does Whitewater use? How can you tell?
2. Determine Whitewater’s cost of goods sold for July. Also compute gross profit for July.
3. What is the cost of Whitewater’s July 31 inventory of backpacks?