Kims Shirt and Tie Shop uses a periodic inventory system. Kims completed the following inventory transactions during

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Kim’s Shirt and Tie Shop uses a periodic inventory system. Kim’s completed the following inventory transactions during April, its first month of operations:image


a. Compute Kim’s ending inventory and cost of goods sold under FIFO costing.


b. Then compute ending inventory and cost of goods sold under the weighted-average- cost method. Round average unit cost to three decimal places, but round all totals to the nearest cent.


c. Compute gross margin under both methods. Which method results in the higher gross margin?

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Horngrens Accounting Volume 1

ISBN: 9780136889373

12th Canadian Edition

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

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