Sammy's Sportswear sells sport jerseys. It has a May 31, 2018 year-end. 

On February 28, 2018, Sammy's Sportswear had in inventory of 40 jerseys that each cost $20. During the next 3 months, Sammy's Sportswear purchased the following merchandise:

		Units		Unit Cost		Total
March		50		$ 30		$ 1,500
April		100		$ 40		$ 4,000
May		150		$ 50		$ 7,500

During March, April, and May, Sammy's Sportswear sold the following merchandise:

		Units		Unit Selling Price		Total
March		60		$ 60		$ 3,600
April		40		$ 70		$ 2,800
May		90		$ 90		$ 8,100

Operating expenses for March, April, and May totalled $3,500. Sammy's Sportswear used a perpetual inventory system. Assume that monthly purchases occurred on the first day of each month.

Required:

1. Calculate Sammy's Sportswear's ending inventory at May 31, 2018, using the moving-weighted-average costing method and the FIFO costing method.
2. Prepare Sammy's Sportswear's May 31, 2018 income statement for both the moving-weighted-average costing method and the FIFO costing method. Record the gross margin and operating income.

Answer rating: 100% (QA)

Sure lets start by calculating the ending inventory and preparing the income statement using both th... View the full answer