The Following Data Are Available for One Item of Merchandise

question 151

Essay

The following data are available for one item of merchandise sold by Jocque Fabrics, which uses a periodic inventory system. $\begin{array}{rrl}\text { February } & 1 & \text { On hand, } 100 \text { units at } \$ 12 \text { each } \\&8 & \text { Sold, } 60 \text { units for } \$ 30 \text { each } \\& 14 & \text { Purchased, } 30 \text { units at } \$ 13 \text { each } \\&25 & \text { Sold, } 24 \text { units for } \$ 30 \text { each }\end{array}$
-Refer to the information provided for Jocque Fabrics.If the company uses the FIFO method,determine the following amounts:
A)ending inventory on February 28th
B)cost of goods sold for the month of February
C)gross margin for February

• A)ending inventory on February 28th
• B)cost of goods sold for the month of February
• C)gross margin for February

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Definitions:

Loan

A sum of money borrowed from a lender that is expected to be paid back with interest.

Materially Altered

Refers to significant modifications made to a document or object that change its original condition or purpose.

Presentment Warranties

are assurances given by a party during the presentation of a negotiable instrument that certain facts are true.

Drawer

A drawer is the party that issues or writes a check or draft instructing the drawee, such as a bank, to pay a specified sum of money to a third party, the payee.