Question: If your instructor has assigned the Appendix to this chapter, redo Problem AP7-1 assuming that the company uses the periodic inventory system. In Problem AP7-1

If your instructor has assigned the Appendix to this chapter, redo Problem AP7-1 assuming that the company uses the periodic inventory system.

In Problem AP7-1

The Soft Touch Company sells leather furniture. The following schedule relates to the company€™s inventory for the month of April:

If your instructor has assigned the Appendix to this chapter,

a. Calculate Soft Touch Company€™s cost of goods sold, gross margin, and ending inventory using:
i. FIFO
ii. Weighted-average
b. Which cost formula produced the higher gross margin?

Cost $45,000 31.250 Sales 75 units 50 units 30 units 25 units 55 units 40 units 50 units 9 April 1 Beginning inventory Purchase Sale Purchase Sale Sale Purchase $33,000 16,250 68,750 48,000 15 33.750

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