Reference no: EM13525942

Assume a Tiger Sports outlet store began July 20, 2012 with 40 pairs of running shoes that cost the store $ 32 each. The sale price of these shoes was $66. During July, the store completed these inventory transactions.
Inventory transactions
units unit cost unit sale price
Jul 2 Sale 13 $32 $66
9 Purchase 78 33
13 Sale 27 32 66
18 Sale 11 33 68
22 sale 34 33 68
29 Purchase 20 34

Requirement 1. The preceding data are taken from the store's perpetual inventory records. Which cost method does the store use? Explain how you arrived at your answer. The Sports uses(a). FIFO (B). LIFO (C). Weighted-average cost.
(B). This is apparent from the flow of costs out of inventory. For example, the July 13 sale shows unit cost of (a). $32 (b) 33 (c) 34 which came from the (a).beginning inventory (b).the July 8th purchase (c). the July 30th purchase. This is how (a). FIFO ,and only FIFO, (b). LIFO, and only LIFO (c). Weighted-Average cost, and only Weighted -Average cost.
Requirement 2. Determine the store's cost of goods sold for July.
(a). The cost of goods sold is ____________.
(b). The gross profit for July is ____________.
Requirement 3. What is the cost of the store's July 31 inventory of running shoes.?
(a). The cost of the company's inventory at July 31 is ________________.