Refer to Problems 6-2B and 6-3B to prepare a table comparing ending inventory, cost of goods sold, and gross margin under both the FIFO and the moving-weighted-average-cost methods. You will need to calculate gross margin for Problem 6-2B. Explain why the gross margin is lower under the moving-weighted-average-cost method.
In Problem 6-2B
Nov. 1 Opening inventory ............ 50 chairs at $ 50
3 Purchase ............................... 60 chairs at $ 55
10 Sale ............................... 100 chairs at $120
22 Purchase ......................... 90 chairs at $ 60
24 Sale ............................... 70 chairs at $140
Assume that Kamlhani Imports uses the FIFO cost method. All sales were made on account. Operating expenses were $14,400, with two-thirds paid in cash and the rest accrued in Accounts Payable.