Given:
Particular Date Unit Amount
Purchase Feb.1 127 $53
Purchase Mar.14 219 $55
Purchase May.1 156 $58
Sales 361 $74
Find:
Gross profit using FIFO
Computation of Total sale:
Total sale = 361 × $74
Total sale = $26,714
Computation of Cost of goods sold:
Cost of goods sold = (127 × $53) + (219 × $55) + [(361-127-219) × $58]
Cost of goods sold = ($6,731) + ($12,045) + ($870)
Cost of goods sold = $19,646
Computation of Gross profit:
Gross profit = Total sale - Cost of goods sold
Gross profit = $26,714 - $19,646
Gross profit = $7,068
