Question

Calco’s sales for the year 2014 were $115,000 ($92/unit). On January 1, 2014, Calco’s beginning inventory showed 120 units, costing $4,800. During 2014, Calco purchased 1,420 units at $38 each. Calco’s income statement is as follows
Requirements
1. Complete the income statement for Calco, using FIFO and weighted average cost methods.
2. Calculate the inventory turnover, using FIFO and weighted average cost methods.
3. Which method shows higher profit and inventory turnover? Explain.


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  • CreatedJuly 08, 2015
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