Wisconsin Trading Company uses a periodic inventory system and has a beginning inventory as of April 1 of 150 tents. This consists of 150 tents purchased in February at a cost of \(\$ 210\) each. During April, the company had the following purchases and sales of tents.

Instructions

a. Determine the April cost of goods sold and the cost of the April 30 ending inventory using FIFO, LIFO, and average-cost.

b. Calculate Wisconsin Trading's gross profit and gross profit margin for the month of April under each method.

c. Discuss the results of parts (a) and (b), providing an explanation of the cause of the results.

Transcribed Image Text:

Date April 3 10 17 24 30 Purchases Units 200 300 Unit Cost $250 270 Units 75 250 Sales 200 Unit Price $400 400 400