Question

Blue Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June 1, of 490 bookcases at a cost of $130 each. During June, the company had the following purchases and sales of bookcases:

			Purchases				Sales
Date			Units		Unit cost		Units		Unit price
June	6		1,200		$132
	10						1,030		$204
	14		1,770		133
	16						1,670		209
	26		960		134

(a)

Correct answer iconYour answer is correct.

Determine the cost of goods sold and the cost of the ending inventory using the average cost formula. (Use unrounded numbers for average cost calculations. Round answers to 2 decimal places. e.g 5.52.)

Cost of goods sold		$ 356,756.12
Cost of the ending inventory		$229,393.88

  (b)

Calculate Blue Furniture’s gross profit and gross profit margin for the month of June. (Round gross profit margin to 1 decimal place, e.g. 15.1 and gross profit to the nearest whole dollar, e.g. 1525.)

Gross profit		$enter the gross profit in dollars rounded to 0 decimal place
Gross profit margin		enter the gross profit margin in percentages rounded to 1 decimal place	%

Answer 1