Case Defence sells smart phone cases and uses the perpetual inventory system. The following is information on the purchases and sales of €œDefender Box€ cases. On October 1, Case Defence had 20 units with a unit cost of $14.

Required
1. Calculate the dollar value of cost of goods sold and ending inventory for the month of October using the following methods.
a. FIFO 

b. Moving weighted average. Round all unit costs to two decimal places and round all other numbers to the nearest dollar. 

2. Using the calculations in Part 1, complete the following table:

3. Does using FIFO or Moving weighted average produce 

a. A higher gross profit? b. A higher ending inventory balance?
4. Calculate the gross profit percentage for FIFO and Moving weighted average for the month of October. Round to the nearest percentage.

Transcribed Image Text:

Purchases Sales Units Unit Cost Units Unit Price Date Oct. 3 10 15 Oct. 6 $50 15 Oct. 12 20 17 $50 20 Oct. 19 Oct. 23 30 19 $50 Oct. 30 25 Oct. 31 15 Moving Weighted Average FIFO Sales... Cost of goods sold Gross profit...