Measuring the cost of goods sold and ending inventory-perpetual system
Assume a Nike outlet store began in August 20X0 with 40 pairsof running shoes that cost the store $40 each. The sale price of the shoes was $70. During August the store completed these inventory transactions: (for the three sets of #'s below, the first column is the units, the second is unit cost, and the last is unit sale price)
Units Unit Cost Unit Sale Price
aug. 3 Sale... 16 $40 $70
8 Purchase... 80 $41
11 Sale... 24 $40 $70
19 Sale... 9 $41 $72
24 Sale... 30 $41 $72
30 Purchase... 18 $42
I've been stuck on this two part problem for two days and the book says to (1a.) determine the store's cost of goods sold for August. Also compute the GP for August. When I did it I kept getting $1,456 but the answer key shows $2,409.
(1b.) what is the cost of the stores August 31 inventory of running shoes?when I did this one I got $1,484 but the answer key shows $2,437.
Can anyone please help. I don't know what I'm doing wrong or right and my text confuses me because it isn't showing any steps that I can fathom.
Thanks.
