The store completed these inventory transactions

Reference no: EM131132642

Assume a Nike outlet store began August 20X0 with 40 pairs of running shoes that cost the store $40 each. The sale price of these shoes was $70. During August, the store completed these inventory transactions:

		Units	Unit Cost	Unit Sale Price
Aug. 3	Sale	16	$40	$70
8	Purchase	80	41
11	Sale	24	40	70
19	Sale	9	41	72
24	Sale	30	41	72
30	Purchase	18	42

Required

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.

2. Determine the store's cost of goods sold for August. Also compute gross profit for August.

3. What is the cost of the store's August 31 inventory of running shoes?

Reference no: EM131132642

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