Answered: Saddlery Company sells leather saddles…

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 6MCQ: Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is...

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a) Calculate Saddlery Company’s cost of goods sold, gross margin, and ending inventory using weighted-average. (Round calculations for cost per unit to 2 decimal places, e.g. 10.52 and final answers to 0 decimal places, e.g. 61,052.)

b) Calculate Saddlery Company’s cost of goods sold, gross margin, and ending inventory using FIFO.

c)Calculate gross margin for both ?

solve accurately with all working and steps with explanation , computation , formula answer in text show computation for numbers thanks

Saddlery Company sells leather saddles and equipment for horse enthusiasts. Saddlery uses the perpetual inventory system. The
following schedule relates to the company's inventory for the month of May:
May 1
5
9
13
24
27
30
Beginning inventory
Sale
Purchase
Purchase
Sale
Sale
Purchase
180 units
120 units
60 units
240 units
240 units
60 units
90 units
Cost
$99,000
$36,300
$158,400
$65,340
Sales
$85,800
$184,800
$52,800

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