2. During 2017, Maple Leaf Limited and Preds Limited made the following identical purchases: Date of...

Transcribed Image Text:

2. During 2017, Maple Leaf Limited and Preds Limited made the following identical purchases: Date of Purchase Jun 2 Jun 9 Jun 16 Jun 23 Units Purchased 100 units 200 units 200 units 100 units Cost Per Unit $10,00 $10.50 $11.50 $12,00 Each company sold 400 units for $20 each, but Maple Leaf uses average cost inventory valuation and Preds uses FIFO inventory valuation. Assume there was no beginning inventory. a. Calculate the cost of goods sold for each company (4pts) b. Calculate the ending inventory in units and dollars for each company (2pts) c. What are the respective gross margins and which company will show the best profitability. (2pts) 2. During 2017, Maple Leaf Limited and Preds Limited made the following identical purchases: Date of Purchase Jun 2 Jun 9 Jun 16 Jun 23 Units Purchased 100 units 200 units 200 units 100 units Cost Per Unit $10,00 $10.50 $11.50 $12,00 Each company sold 400 units for $20 each, but Maple Leaf uses average cost inventory valuation and Preds uses FIFO inventory valuation. Assume there was no beginning inventory. a. Calculate the cost of goods sold for each company (4pts) b. Calculate the ending inventory in units and dollars for each company (2pts) c. What are the respective gross margins and which company will show the best profitability. (2pts)

Answer rating: 100% (QA)

Maple Leaf Limited Average Cost and Preds Limited FIFO Inventory Analysis a Cost of Goods Sold COGS ... View the full answer