The following table shows the flow of inventory in chronological order. October 1 4 12 16...
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The following table shows the flow of inventory in chronological order. October 1 4 12 16 24 31 Beginning Inventory Purchase Purchase Sale Purchase Ending Inventory Units 150 400 800 1,300 400 450 $/unit 20 30 32 50* 42 * Selling price Instructions (1) Assume the company follows a perpetual system. Using FIFO method, compute the cost of goods sold, the value of ending inventory and gross margin. (2) Assume the company follows a perpetual system. Using the moving average-cost method, compute the cost of goods sold, the value of ending inventory and gross margin. (3) Assume the company follows a periodic system. Using the total average-cost method, compute the cost of goods sold, the value of ending inventory and gross margin. The following table shows the flow of inventory in chronological order. October 1 4 12 16 24 31 Beginning Inventory Purchase Purchase Sale Purchase Ending Inventory Units 150 400 800 1,300 400 450 $/unit 20 30 32 50* 42 * Selling price Instructions (1) Assume the company follows a perpetual system. Using FIFO method, compute the cost of goods sold, the value of ending inventory and gross margin. (2) Assume the company follows a perpetual system. Using the moving average-cost method, compute the cost of goods sold, the value of ending inventory and gross margin. (3) Assume the company follows a periodic system. Using the total average-cost method, compute the cost of goods sold, the value of ending inventory and gross margin.
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1 FIFO method perpetual FIFO October 1 beginning inventory 150 units 20 3000 October 4 purchase 400 ... View the full answer
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
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