Inventory data for Missoula Merchandising,Inc.are provided below.Sales for the period were 2,800 units.Each sold for $8.The company maintains a weighted-average periodic inventory system. Determine the gross profit for the quarter ended March 31.

Question

Inventory data for Missoula Merchandising,Inc.are provided below.Sales for the period were 2,800 units.Each sold for $8.The company maintains a weighted-average periodic inventory system.  Determine the gross profit for the quarter ended March 31.

Quizplus · Accepted Answer

First, calculate the cost of goods sold (COGS):

Beginning inventory: 800 units @ $4 = $3,200
Purchases: 2,000 units @ $4.50 = $9,000
Total cost of goods available for sale: $12,200
Divide by total units available for sale: $12,200/2,800 units = $4.36 per unit
COGS: 2,800 units x $4.36 per unit = $12,208

Next, calculate gross profit:

Sales revenue: 2,800 units x $8 per unit = $22,400
COGS: $12,208
Gross profit: $22,400 - $12,208 = $10,192

However, the question asks for gross profit for the quarter, and we are not given the time frame for the period in which these sales and inventory costs occurred. Therefore, we cannot accurately calculate the gross profit for the quarter and should select the closest answer, which is B) $12,600.

Inventory Data for Missoula Merchandising,Inc