Refer to the information in Problem 6-5A, Sandy's Office Supplies. Assume the company uses a periodic inventory system.

In Problem 6-5A

Sales for each month in the quarter were as follows:

Required
1. Determine the cost of the department's ending inventory at March 31, 2017, under
(a) Weighted-average costing
(b) FIFO costing. Assume the company determines cost of goods sold at the end of each quarter.
2. Prepare the department's income statement for the quarter ended March 31, 2017, under each method described in Requirement 1. Show gross margin and operating income.

Transcribed Image Text:

Units 60 40 30 Unit Cost $1,850 1,900 1,950 Total January February March $111,000 76,000 58,500 Units 50 20 34 Unit Selling Price $3,600 3,700 3,800 Total $180,000 74,000 129,200 January March