If your instructor has assigned the Appendix to this chapter, redo Problem 7-16 assuming that the company uses a periodic inventory system.
In problem 7-16

Required:
a. Assuming Glassworks uses the perpetual inventory system, calculate the cost of goods sold and ending inventory for March under each of the following cost flow assumptions:
i. FIFO
ii. Moving average
b. Which of the cost flow assumptions would produce the higher net income?

Transcribed Image Text:

Units nin March I Beginning inventory5,000 60,000 Purchase Sale Sale Purchase Sale 3,000 4,000 3,000 4,000 3,500 36,300 14 49,000 28