Third Avenue Furniture Began June with Merchandise Inventory of 45

question 34

Essay

Third Avenue Furniture began June with merchandise inventory of 45 sofas that cost a total of $31,500.During the month,the company purchased and sold merchandise on account as follows:
$$\begin{array} { | r | r | r | } \hline \text { June } 7 & \text { Purchase } & 25 \text { sofas @ } \$ 750 \text { each } \\\hline 14 & \text { Sale } & \text { 30 sofas @ } \$ 1,150 \text { each } \\\hline 18 & \text { Purchase } & 50 \text { sofas @ } \$ 775 \text { each } \\\hline 27 & \text { Sale } & \text { 35 sofas @ } \$ 1,200 \text { each } \\\hline\end{array}$$ Prepare a perpetual inventory record,using the weighted-average inventory costing method,and determine the company's cost of goods sold,ending merchandise inventory,and gross profit.(Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.)

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Definitions:

Initial Investment

The amount of money used to start a project, business, or investment, often encompassing costs such as capital expenditures and working capital.

Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business, showcasing the company's financial health and operational efficiency.

Crossover Rate

The rate at which two projects have the same net present value or where their NPV profiles intersect.

Investment Cash Flows

Money movements related to investments in and out of a company, such as purchasing or selling assets.