A Calculate inventory amounts when costs are rising (LO6-3) [The following information applies to the questions displayed below.]

During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 58 $ 50 $ 2,900 Apr. 7 Purchase 138 52 7,176 Jul. 16 Purchase 208 55 11,440 Oct. 6 Purchase 118 56 6,608 522 $ 28,124 For the entire year, the company sells 444 units of inventory for $68 each. Exercise 6-4A Part 1 Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

Using FIFO to calculate inventory amounts when costs are rising:

                                               Unit      Unit Cost    Total Cost

Jan. 1 Beginning inventory       58      $ 50           $ 2,900

Apr. 7 Purchase                       138          52               7,176

Jul. 16 Purchase                     208          55              11,440

Oct. 6 Purchase                       118          56              6,608

                                               522                        $ 28,124

b) Less Cost of Sales             444                       $ 23,756

a) Ending Inventory                   78         56           $ 4,368

c) Sales                                    444         68          $30,192

Cost of Goods Sold                444                       $23,756

d) Gross Profit                                                        $6,436

Explanation:

FIFO is one of the methods for computing inventory.  It is First in, First Out based on the concept that goods that were purchased first would be the first to be sold.  When there are rising prices and goods are of perishable nature, it makes sense to sell the goods that were bought first.

steering wheels are always situated on the left side of the car.

always drive on the right side of the road.

white lines separate lanes of traffic traveling the same direction.

hashed or broken lines means you may change lanes when it is safe.

solid white lines mean stay in your lane.

yellow lines separate traffic moving in opposing directions.

hashed or broken yellow lines mean you can carefully pass, paying attention to oncoming traffic.

never cross a solid yellow line (or double yellow line).

when turning left at an intersection, pass in front of any cars that are turning left from the opposing direction (do not try to pass behind them).

use the left lane to pass other cars traveling your direction.

do not pass in the right lane unless absolutely necessary.

if you are driving in the far left hand lane and someone would like to pass you, move over to the right lane when it is safe to do so and allow them to pass.

you must always yield to pedestrians.

come to a complete stop whenever you see pedestrians trying to cross the street.

never pass a school bus if it has flashing red lights. wait until the lights have stopped.

be aware of bicyclists. often they share the road with cars and are supposed to also follow general traffic laws.

be particularly careful about driving in cities with bike lanes -- always check before turning that a bike is not coming.

it is mandatory to pull over or stop at an intersection to allow an emergency vehicle to pass you if you see one traveling with lights flashing and/or a siren running.

do not overuse your car horn. horns are used almost exclusively for emergency situations or for when you feel unsafe.

explanation:

in terms of experimental research, mcdonald’s charging different prices in the two cities relates to