Inventory Costing Methods Terpsichore Company uses a perpetual inventory system. For 2018 and 2019, Terpsichore has the following data: Activity Units Purchase Price (per unit) Sale Price (per unit) 2018 Beginning inventory 100 $45 Purchase 1, Feb. 25 700 52 Sale 1, Apr. 15 600 $90 Purchase 2, Aug. 30 500 56 Sale 2, Nov. 13 600 90 Purchase 3, Dec. 20 400 58 2019 Sale 3, Mar. 8 400 90 Purchase 4, June 28 900 62 Sale 4, Dec. 18 200 90 3. For each year, compute cost of goods sold, the cost of ending inventory, and gross margin using the average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2018 2019 Cost of goods sold ??? ?????????/ Cost of ending inventory ???????? ???????? Gross margin ?????? ???????????
Inventory Costing Methods Terpsichore Company uses a perpetual inventory system. For 2018 and 2019, Terpsichore has the following data: Activity Units Purchase Price (per unit) Sale Price (per unit) 2018 Beginning inventory 100 $45 Purchase 1, Feb. 25 700 52 Sale 1, Apr. 15 600 $90 Purchase 2, Aug. 30 500 56 Sale 2, Nov. 13 600 90 Purchase 3, Dec. 20 400 58 2019 Sale 3, Mar. 8 400 90 Purchase 4, June 28 900 62 Sale 4, Dec. 18 200 90 3. For each year, compute cost of goods sold, the cost of ending inventory, and gross margin using the average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2018 2019 Cost of goods sold ??? ?????????/ Cost of ending inventory ???????? ???????? Gross margin ?????? ???????????
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...
Related questions
Topic Video
Question
Inventory Costing Methods
Terpsichore Company uses a perpetual inventory system. For 2018 and 2019, Terpsichore has the following data:
Activity | Units | Purchase Price (per unit) |
Sale Price (per unit) |
|||
2018 | ||||||
Beginning inventory | 100 | $45 | ||||
Purchase 1, Feb. 25 | 700 | 52 | ||||
Sale 1, Apr. 15 | 600 | $90 | ||||
Purchase 2, Aug. 30 | 500 | 56 | ||||
Sale 2, Nov. 13 | 600 | 90 | ||||
Purchase 3, Dec. 20 | 400 | 58 | ||||
2019 | ||||||
Sale 3, Mar. 8 | 400 | 90 | ||||
Purchase 4, June 28 | 900 | 62 | ||||
Sale 4, Dec. 18 | 200 | 90 |
|
3. For each year, compute cost of goods sold, the cost of ending inventory, and gross margin using the average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
2018 | 2019 | |
Cost of goods sold | ??? | ?????????/ |
Cost of ending inventory | ???????? | ???????? |
Gross margin | ?????? | ??????????? |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning