# Burlington Wholesale Inc. had the following inventory transactions for one month. The company uses a perpetual system and FIFO. All purchases and sales are on account.

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What amount of cost of goods sold will be recorded on January 10?

What is the value of the inventory after the January 10 transaction?

What is the gross profit percentage on the January 10 sale?

What is the amount of gross profit on the January 10 sale?

What is the value of the inventory after the January 12 transaction?

What amount of cost of goods sold will be recorded on January 17?

What is the value of the inventory after the January 17 transaction?

What is the gross profit percentage on the January 17 sale?

What is the amount of gross profit on the January 17 sale?

What is the value of the inventory after the January 24 transaction

What is the total revenue for the month?

What is the total gross profit for the month? (2 marks)

What is the amount of the adjustment that must be made to inventory at the end of the month if the selling price drops to \$20?

Start your answer with a + sign if an increase, a – sign if a decrease, or enter 0 if no adjustment is needed. (2 marks)

What is the amount of the adjustment that must be made to inventory at the end of the month if the selling price drops to \$30?

Start your answer with a + sign if an increase, a – sign if a decrease, or enter 0 if no adjustment is needed. (2 marks)

1) Amount of Cost of Goods Sold recorded on January 10 = \$1020

2) Value of Inventory after January 10 Transaction = \$1020

3)

Gross Profit Percentage on January 10 Sale –

= ( Sales Revenue – Cost of Goods Sold / Sales Revenue ) X 100

= [ ( 50 Units X \$40 ) – \$1020 / ( 50 Units X \$40 ) ] X 100

= 49%

4) Value of Inventory after January 12 Transaction = \$710

5) Amount of Cost of Goods Sold recorded on January 17 = \$470

6) Value of Inventory after January 17 Transaction = \$240

7)

Gross Profit Percentage on January 10 Sale –

= ( Sales Revenue – Cost of Goods Sold / Sales Revenue ) X 100

= [ ( 20 Units X \$50 ) – \$470 / ( 20 Units X \$50 ) ] X 100

= 53%

8)

Amount of Gross Profit on January,17 Transaction –

= ( Sales Revenue – Cost of Goods Sold )

= ( 20 Units X \$50 ) – \$470

= \$530

9) Value of Inventory after January 24 Transaction = \$1115

10) Total Revenue for the Month –

=( Revenue of January,10 + Revenue of January,17 )

= ( 50 Units X \$40 ) + ( 20 Units X \$50 )

= \$3000