Gamsu’s Office Depot sells office furniture. The company’s fiscal year ends on March 31, 2023. On January 1, 2023, inventory consisted of 20 office dividers that cost $1,800 each. During the quarter, Gamsu’s purchased inventory on account as follows:

Sales for each month in the quarter were as follows:

Operating expenses in the quarter were $110,000.

Assume that the company uses a perpetual inventory system and that purchases of inventory occur on the first day of each month.

Required

1. Determine the cost of the divider ending inventory at March 31, 2023, under

(a) Moving-weighted-average costing and 

(b) FIFO costing. Round the average unit cost to the nearest cent and all other amounts to the nearest dollar.

2. Prepare a multi-step income statement for the quarter ended March 31, 2023, under each method described in Requirement 1.

Transcribed Image Text:

January February March Units 60 40 30 Unit Cost $1,850 1,900 1,950 Total $111,000 76,000 58,500