(12 minutes) Bauer Hockey Inc. uses a perpetual inventory system and had the following activity for its black stick tape inventory item: Total Cost $1,250 Units March 1, inventory 500 Purchases: March 5 250 875 March 10 175 787.50 Sales: March 11 550 Instructions Using the perpetual system, determine the ending inventory and cost of goods sold under the weighted-average method (round unit cost to nearest cent). 1) After the March 5th purchase, what is my inventory cost per unit? (round to the nearest cent). 2) After the March 10th purchase, what is my total inventory cost? 3) After the March 11th sale, how many units do I have in inventory, and what is their cost per unit? 4) After the March 11th sale, what is my cost of goods sold for the month of March? 5) Revenues for the month of March total $3,000, Calculate gross margin and gross margin %. 6) Last March, the company had a gross margin ratio of 30%. Is the company doing better or worse this year? How can you tell?

(12 minutes) Bauer Hockey Inc. uses a perpetual inventory system and had the following activity for its black stick tape inventory item: Total Cost $1,250 Units March 1, inventory 500 Purchases: March 5 250 875 March 10 175 787.50 Sales: March 11 550 Instructions Using the perpetual system, determine the ending inventory and cost of goods sold under the weighted-average method (round unit cost to nearest cent). 1) After the March 5th purchase, what is my inventory cost per unit? (round to the nearest cent). 2) After the March 10th purchase, what is my total inventory cost? 3) After the March 11th sale, how many units do I have in inventory, and what is their cost per unit? 4) After the March 11th sale, what is my cost of goods sold for the month of March? 5) Revenues for the month of March total $3,000, Calculate gross margin and gross margin %. 6) Last March, the company had a gross margin ratio of 30%. Is the company doing better or worse this year? How can you tell?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

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