Martin Corp. began the year with 2,000 units of inventory that had been purchased for $6 per

Question:

Martin Corp. began the year with 2,000 units of inventory that had been purchased for $6 per unit. During the year, 5,000 units were purchased for $8 each and 8,000 units for $10 each. Martin sold 9,000 units during the year for $15 each. The company uses the weighted average cost method.

Required

1. Compute cost of goods sold expense.

2. Compute the gross profit ratio.