Hurst Company's beginning inventory and purchases during the fiscal year ended December 31, 20X2 were as...

 

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Hurst Company's beginning inventory and purchases during the fiscal year ended December 31, 20X2 were as follows: Date Event Units Unit Price Total Cost January 1, 20X2 January 12 February 28 June 29 August 31 $ beg. Inventory 1st purchase 2nd purchase 1,500 $ 10.00 15,000.00 500 $ 11.50 $ 5,750.00 600 14.50 $ 8,700.00 $ 3rd purchase 4th purhcase 1,200 15.00 18,000.00 800 16.50 $ 13,200.00 October 29 5th purchase 6th purchase 7th purchase 300 18.00 $ 5,400.00 November 30 700 18.50 $ 12,950.00 December 21 400 20.00 $ 8,000.00 6,000 $ 87,000.00 There are 1,200 units of inventory on hand at December 31, 20X2. Required: 2a) Compute the Gross Margin for each of the methods assuming that the Unit sales price was $20.00 for each unit sold. 2b) Answer the question "Which method resulted in the highest gross margin?" 2a) FIFO LIFO Method Weighted Average method Sales units x Selling Price Less: Cost of Goods Sold Gross Margin 2b) Which method resulted in the highest gross margin? Hurst Company's beginning inventory and purchases during the fiscal year ended December 31, 20X2 were as follows: Date Event Units Unit Price Total Cost January 1, 20X2 January 12 February 28 June 29 August 31 $ beg. Inventory 1st purchase 2nd purchase 1,500 $ 10.00 15,000.00 500 $ 11.50 $ 5,750.00 600 14.50 $ 8,700.00 $ 3rd purchase 4th purhcase 1,200 15.00 18,000.00 800 16.50 $ 13,200.00 October 29 5th purchase 6th purchase 7th purchase 300 18.00 $ 5,400.00 November 30 700 18.50 $ 12,950.00 December 21 400 20.00 $ 8,000.00 6,000 $ 87,000.00 There are 1,200 units of inventory on hand at December 31, 20X2. Required: 2a) Compute the Gross Margin for each of the methods assuming that the Unit sales price was $20.00 for each unit sold. 2b) Answer the question "Which method resulted in the highest gross margin?" 2a) FIFO LIFO Method Weighted Average method Sales units x Selling Price Less: Cost of Goods Sold Gross Margin 2b) Which method resulted in the highest gross margin?

Answer rating: 100% (QA)

Number of units available for sale 6000 Number of units in ending inventory 1200 Number of units sol... View the full answer