Gale Company has the following inventory and purchases during the fiscal year ended December 31, 2020. Gale

Question:

Gale Company has the following inventory and purchases during the fiscal year ended December 31, 2020.

image

Gale Company employs a perpetual inventory system.

Required

1. Calculate the dollar value of ending inventory and cost of goods sold using:

a. FIFO

b. Moving weighted average. Round all unit costs to two decimal places.

2. Using your calculations from Part 1, complete the following schedule:

image

Analysis Component: How would the gross profits calculated in Part 2 above change if Gale Company had been experiencing increasing prices in the acquisition of additional inventory?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

Question Posted: