Assume the beginning Inventory as of January 1 conststed of 500 units that were purchased for $8.25 each. During the month, three new purchases were made. The first purchase consisted of 700 units costing $8.50 each, the second purchase had 800 units costing$9.00 each, and the third purchase had 600 units costing $9.50 each. At the end of the month, ending Inventory shows 700 units. Compute the cost of goods sold and the ending Inventory for the company using each of the following methods. Also determine the grossmargin if the total sales revenue is $43,000.a. Specific Identafication: of the units sold, 300 were from the beginning Inventory, 600 from the first purchase, 700 from the second purchase, and 300 from the third purchase.Cost of goods soldEnding InventoryGross profitb. Arst-in, first-out (FIFO)Cost of goods soldEnding InventoryGross profit%24C Weighted-average (round the unit price)Cost of goods soldEnding inventoryGross profitd. Last-in, first-out (LIFO)Cost of goods soldEnding inventoryGross profit

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Description: Assume the beginning Inventory as of January 1 conststed of 500 units that were purchased for $8.25 each. During the month, three new purchases were made. The first purchase consisted of 700 units costing $8.50 each, the second purchase had 800 unit

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sume the beginning Inventory as of January 1 conststed of s00 units that were purchased for $8.25 each. During th 9.00 each, and the third purchase had 600 units costing $9.50 each. At the end of the month, ending inventory show nargin if the total sales revenue is $43,000. a Specific identification: of the units sold, 300 were from the beginning Inventory, 600 from the first purchase, 700 Cost of goods sold %24 Ending inventory %24 Gross proft b. Prst-in, first-out (FIFO) Cost of goods sold Ending inventory Gross profit %24 Cweighted-average (round the unit price) Cost of goods sold %24 Ending inventory %24 Gross proft

sume the beginning Inventory as of January 1 conststed of s00 units that were purchased for $8.25 each. During th 9.00 each, and the third purchase had 600 units costing $9.50 each. At the end of the month, ending inventory show nargin if the total sales revenue is $43,000. a Specific identification: of the units sold, 300 were from the beginning Inventory, 600 from the first purchase, 700 Cost of goods sold %24 Ending inventory %24 Gross proft b. Prst-in, first-out (FIFO) Cost of goods sold Ending inventory Gross profit %24 Cweighted-average (round the unit price) Cost of goods sold %24 Ending inventory %24 Gross proft

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 1PB: FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a...

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