Fashion Company began February, 2020 with 41 coats that cost $350 each, applied perpetual inventory system....

 

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Fashion Company began February, 2020 with 41 coats that cost $350 each, applied perpetual inventory system. During the February, the company completed the following inventory transactions: Date 3 7 19 12 25 27 28 Description Purchase Sale Purchase Sale Purchase Sale Ending inventory Quantity (units) 46 **** 63 ***. 42 45 Unit cost www. **** Unit Selling price $510 $520 $550 Required: 1. Fill the dot (.....) with a reasonable amount for given transactions above. (0.5 marks) 2. Calculate (i) cost of inventory, (ii) cost of sale, (iii) gross profit if FIFO method is used. (0.5 marks) 3. If cost of inventory decreases, which method (FIFO, LIFO, average) do you prefer? Why? (0.5 marks) Fashion Company began February, 2020 with 41 coats that cost $350 each, applied perpetual inventory system. During the February, the company completed the following inventory transactions: Date 3 7 19 12 25 27 28 Description Purchase Sale Purchase Sale Purchase Sale Ending inventory Quantity (units) 46 **** 63 ***. 42 45 Unit cost www. **** Unit Selling price $510 $520 $550 Required: 1. Fill the dot (.....) with a reasonable amount for given transactions above. (0.5 marks) 2. Calculate (i) cost of inventory, (ii) cost of sale, (iii) gross profit if FIFO method is used. (0.5 marks) 3. If cost of inventory decreases, which method (FIFO, LIFO, average) do you prefer? Why? (0.5 marks)

Answer rating: 100% (QA)

Solution Given Beginning Balance of Inventory 41 Coats Total Sale during February 46 6342 151 Coats Ending Inventory 45 Coats 1 We Need to find Total ... View the full answer