If your instructor has assigned the Appendix to this chapter, redo Problem AP7-6A assuming that the company uses a periodic inventory system. Round weighted-average per unit cost to two decimal places.

Data from AP7-6A

The following information relates to Glassworks Ltd.’s inventory transactions during the month of July.

All of the units sold were priced at $20 per unit.

Required

a. Glassworks Ltd. uses the perpetual inventory system. Calculate Glassworks’ cost of goods sold, gross margin, and ending inventory for the month of July using:

i. FIFO

ii. weighted-average. Round per unit cost to two decimal places.

b. Which of the cost formulas would produce the higher gross margin?

Transcribed Image Text:

Amount Units Cost/Unit Beginning inventory July 1 4,000 6,000 6,000 1,500 5,000 3,500 $12.00 $48,000 75,000 Purchase $12.50 8. Sale Sale Purchase 14 22 63,750 $12.75 28 Sale