The Ryan Corporation uses the periodic inventory method. The following data were available for the year ended October 31, 2021. Transaction Quantity Price Qty*Price Inventory October 31, 2020 6000 48000 March Purchase 1500 13500 May Purchase 1800 10 18000 June Purchase 800 11 8800 July Sales 6000 | 90000 15 Required (To prevent difficulties with rounding, please calculate the unit cost of ending inventory to two decimal places ): 1. Assuming the company uses FIFO, compute gross margin for the Ryan Company in the 2021 fiscal year. 2. Assuming the company uses LIFO, compute gross margin for the Ryan Company in the 2021 fiscal year. 3. Assuming the company uses the Weighted Average method, compute gross margin for the Ryan Company in the 2021 fiscal year.
The Ryan Corporation uses the periodic inventory method. The following data were available for the year ended October 31, 2021. Transaction Quantity Price Qty*Price Inventory October 31, 2020 6000 48000 March Purchase 1500 13500 May Purchase 1800 10 18000 June Purchase 800 11 8800 July Sales 6000 | 90000 15 Required (To prevent difficulties with rounding, please calculate the unit cost of ending inventory to two decimal places ): 1. Assuming the company uses FIFO, compute gross margin for the Ryan Company in the 2021 fiscal year. 2. Assuming the company uses LIFO, compute gross margin for the Ryan Company in the 2021 fiscal year. 3. Assuming the company uses the Weighted Average method, compute gross margin for the Ryan Company in the 2021 fiscal year.
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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