Wisconsin Trading Company uses a periodic inventory system and has a beginning inventory as of April 1
Question:
Wisconsin Trading Company uses a periodic inventory system and has a beginning inventory as of April 1 of 150 tents. This consists of 150 tents purchased in February at a cost of \(\$ 210\) each. During April, the company had the following purchases and sales of tents.
Instructions
a. Determine the April cost of goods sold and the cost of the April 30 ending inventory using FIFO, LIFO, and average-cost.
b. Calculate Wisconsin Trading's gross profit and gross profit margin for the month of April under each method.
c. Discuss the results of parts (a) and (b), providing an explanation of the cause of the results.
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Related Book For
Financial Accounting Tools For Business Decision Making
ISBN: 9781119791089
10th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell
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