Question: If your instructor has assigned the Appendix to this chapter, redo Problem 7-12 assuming that the company uses the periodic inventory system. In problem 7-12

If your instructor has assigned the Appendix to this chapter, redo Problem 7-12 assuming that the company uses the periodic inventory system.
In problem 7-12

a. Calculate the cost of goods sold and ending inventory under each of the following costing assumptions:
1. FIFO
2. Moving average
b. Determine the gross margin under each of the costing assumptions calculated in part "a." Which of the costing assumptions produced the higher gross margin?

Sales Cost $45,000 31,250 April Beginning inventory75 units45.000 Purchase 50 units 30 units 25 unit 55 units 40 units 50 units 5 Sale $33,000 Purchase ts 16.250 15 Sale 22 Sale 28 Prchase 68,750 48,000 33,750

Step by Step Solution

★★★★★

3.53 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a FIFO units sold 125 Cost of goods sold 75 x 600 50 x 625 7... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

695-B-A-G-F-A (7421).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

The appendix to this chapter explains how tax laws can affect how much earnings the subsidiaries remit to parents. Explain how U.S. tax laws may encourage foreign subsidiaries to reinvest their...

If your instructor has assigned the Appendix to this chapter, redo Problem AP7-3 assuming that the company uses a periodic inventory system. In Problem AP7-3 At the beginning of its operations in...

If your instructor has assigned the Appendix to this chapter, redo Problem AP7-5 assuming that the company uses a periodic inventory system. In Problem AP4-5 The following information relates to...

If your instructor has assigned the Appendix to this chapter, redo Problem 7-14 assuming that the company uses a periodic inventory system. a. Calculate the cost of goods sold for October using the...

Hi, Can you check the answers for Periodic and Perpetual style? I have the answer key, however, in the Sales Revenue, in the answer key, they wrote the units sold is 9,000 not 11,000 so I want to...

If your instructor has assigned the Appendix to this chapter, redo Problem 7-16 assuming that the company uses a periodic inventory system. In problem 7-16 Required: a. Assuming Glassworks uses the...

If your instructor has assigned the Appendix to this chapter, redo Problem AP7-2B assuming that the company uses the periodic inventory system. Round weighted-average per unit cost to two decimal...

If your instructor has assigned the Appendix to this chapter, redo Problem AP7-4B assuming that the company uses a periodic inventory system. Round weighted-average per unit cost to two decimal...

If your instructor has assigned the Appendix to this chapter, redo Problem AP7-4A assuming that the company uses a periodic inventory system. Round weighted-average per unit cost to two decimal...

If your instructor has assigned the Appendix to this chapter, redo Problem AP7-6B assuming that the company uses a periodic inventory system. Round weighted-average per unit cost to two decimal...

Cheryl has an AGI of $150,000 and is considering five different charitable contribution options, but will choose only one. Calculate the allowable charitable deduction amount for each, as well as any...

The following unadjusted trial balance is prepared at fiscal year-end for FAB Products Company. Rent expense and salaries expense are equally divided between selling activities and the general and...

Under the CAPM, the required rate of retam oe a firm's common stock is determined only by the firm's market risk. If its market risk is known, and if that risk is expected to remain coestant, then...

Why has B2B generated much greater revenues than B2C?

Using the financial data shown in Exercise 2-17 for Three Rivers Realty, Inc., prepare a balance sheet as of November 30, 2007.

Using the financial data shown in Exercise 2-17 for Three Rivers Realty, Inc., prepare a statement of cash flows for the month ending November 30, 2007.

Describe how transactions of Lucent Technologies, Inc., would affect the three elements of the accounting equation. a. Received cash from issuing stock. b. Paid off long-term debt. c. Received...

A group of 35 tourists can choose between visiting the Aero Space Museum of Calgary (A), the Calgary Zoo (Z), or the Glenbow Museum (G). . 18 went to the Aero Space Museum, 21 went to the zoo, and 23...

The following table depicts how an investor averages out the unit trust price along the year 2019 by investing on a fixed and monthly basis amidst the price fluctuations. Unit price RM0.61 RMO.53...

Find the following values, using the equations, and then work the problems using a financial calculator to check your answers. Disregard rounding differences. (Hint: If you are using a financial...