16 July, 17:15

# The Boxwood Company sells blankets for \$38.00 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.Date Blankets Units CostMay 03 Purchase 29 \$16.00May 10 Sale 12May 17 Purchase 38 \$18.00May 20 Sale 15May 23 Sale 10May 30 Purchase 40 \$19.00Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method.

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Answers (1)
1. 16 July, 17:25
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Gross Profit for May 798

Explanation:

under FIFO

We need to use units from the beginning of the month first.

May 10th sale 12 x \$16 = 192

May 20th sale 15 x \$16 = 240

May 23th

2 x \$16 = 32

8x 1\$8 = 144

Total COGS

608

Sales Revenue 37 x 38 = 1,406

Cost of Good Sold (608)

Gross Profit for May 798
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