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QTY

Jul. 1

Beginning merchandise inventory

25

tires @

$50

each

11

Purchase

15

tires @

$58

each

23

Sale

20

tires @

$71

each

26

Purchase

18

tires @

$72

each

29

Sale

21

tires @

$71

each

Compute cost of goods sold and gross profit using the FIFO inventory costing method.

	Purchases			Cost of Goods Sold			Inventory on Hand
		Unit	Total		Unit	Total		Unit	Total
Date	Quantity	Cost	Cost	Quantity	Cost	Cost	Quantity	Cost	Cost
Jul. 1							25	50	1250
11	15	58	870				25	50	1250
							15	58	870
23				20	50	1000	20	50	1000
							15	58	870
26	18	72	1296				20	50	1000
							15	58	870
							18	72	1296
29				20	50	1000	32	72	2304
				15	58	870
				3	72	216
Totals	33		2166	58		3086	32		2304

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