Tool Depot sells the latest selection of power tools and uses a perpetual inventory system. The following is information on the purchases and sales of the power drills, €œM1500.€ On November 1, Tool Depot had 150 units with a unit cost of $49.

Required
1. Calculate the cost of goods sold and ending inventory 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 your calculations from Part 1, complete the following schedule:

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 both methods for the month of November. Round to the nearest percentage.

Transcribed Image Text:

Purchases Sales Unit Cost Units Unit Price Date Units $100 Nov. 4 100 Nov. 6 200 47 Nov. 16 350 45 $100 Nov. 20 275 Nov. 24 150 40 Nov. 28 $110 250 100 $110 Nov. 30 Moving Weighted Average FIFO Sales.. Cost of goods sold Gross profit. . ...........