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Solution
I ) Average inventory = $610,000 / 5 = $122000
Total Inventory = $122000 * 2 = $244000
Consumed Inventory = $244000 - $80000/2 = $204,000
Gross Profit = $610,000 - $204,000 = $406,000

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Solution I ) Average inventory = $610,000 5 = $122000Total Inven.pdf

  • 1. Solution I ) Average inventory = $610,000 / 5 = $122000 Total Inventory = $122000 * 2 = $244000 Consumed Inventory = $244000 - $80000/2 = $204,000 Gross Profit = $610,000 - $204,000 = $406,000