Telamark Company uses the moving weighted average method for inventory costing. The following incomplete inventory sheet regarding Product W506 is available for the month of March 2020:

March 4 reflects a return made by a customer of incorrect items shipped on March 3; these items were returned to inventory.

Required

Complete the inventory sheet. Round all calculations to two decimal places.

Analysis Component: The gross profit realized on the sale of Product W506 during February 2020 was 36.16%. The selling price was $148 during both February and March. Calculate the gross profit ratio for Product W506 for March 2020 and determine whether the change is favourable or unfavourable from February.

Identify the most probable cause of the change.

Transcribed Image Text:

Cost of Goods Sold/ (Returns to Inventory) Purchases/Transportation-In/ Balance In Inventory Total $ Avg Cost/Unit Units Total $ Total $ Cost/Unit Date Cost/Unit Units Units Brought Forward Mar. $94.00 $5,640.00 60 35 $96.00 22 (2) 4 65 40 17 97.00 28 43 3.