Inventory Costing Methods

Gavin Products uses a perpetual inventory system. For 2012 and 2013, Gavin has the following data:

Activity Units Purchase Price per unit Sale price per unit

2012

Beginning inventory 200 $9

Purchase 1, Feb 15 300 11

Sale 1, Mar. 10 320 $25

Purchase 2, Sept. 15 500 12

Sale 2, Nov. 3 550 25

Purchase 3, Dec. 20 150 13

2013

Sale 3, Apr. 4 200 25

Purchase 4, June 25 200 14

Sale 4, Dec. 18 150 25

Required:

For each year, compute cost of goods sold, the cost of ending inventory, and gross margin using FIFO.

2012 2013

Cost of goods sold $? $?

Cost of ending inventor $? $?

Gross margin $? $?

Answer rating: 100% (QA)

FIFO method The goods purchased first are soldremoved first Compute the cost of goods sold and endin... View the full answer