Widget Tek Inc.s original accountant accepted a position with another firm and left in early March. You have been asked to review the subsidiary inventory ledger record for Widget Tek Inc.s main product for March. Date Inventory Quantity Unit Cost Total Cost

Mar. 1 850 $98.00 $83,300 / 1,275 $95.00 $121,125

Mar. 8 650 $98.00 $63,700

Mar. 11 325 $98.00 $31,850

Mar. 14 325 $98.00 $31,850 / 780 $103.00 $80,340

Mar. 22 260 $98.00 $25,480

Mar. 25 260 $98.00 $25,480 / 1,600 $100.00 $160,000

Study the inventory record for March and answer the questions that follow.

1. Assuming that the product sells for $160 and that 80% of sales are on account, determine the gross profit from sales for March.

2. Making the same assumptions as in (1), determine the ending inventory cost for March.

3. Which inventory method is being used? LIFO Correct