Refer to the information in Problem 6-5B. Assume that the company uses a periodic inventory system.

Required

1. Determine the cost of the department's ending inventory at March 31, 2017, under

(a) The weighted-average-cost method

(b) The FIFO method. Assume the company determines cost of goods sold at the end of the quarter.

2. Prepare the department's income statement for the quarter ended March 31, 2017, under each method described in Requirement 1. Show totals for gross margin and operating income.

In Problem 6-5B

Sales for each month in the quarter were as follows:

Transcribed Image Text:

January February March Units 120 24 48 Unit Cost $585 360 Total $70,200 8,640 21,600 Units 36 108 60 Unit Selling Price $1,260 1,080 1,020 Total $45,360 116,640 61,200 January March