Question: Use the information provided in P10- 1 for Morocco Imports. For each of the three cost- flow assumptions (moving- average, FIFO, and LIFO methods): a.

Use the information provided in P10- 1 for Morocco Imports. For each of the three cost- flow assumptions (moving- average, FIFO, and LIFO methods):

a. Prepare a partial income statement up to the cost of goods sold section.
b. Compute the gross profit percentage.
c. Comment on the ranking of the gross profit percentages.

Sales in Units Transaction Units Unit Cost Total Cost Eeginning inventory 1/1 35,000 $3.50 S 122,500 February 8 March 15 April 10 45.500 100,250 62,000 242,750 3.60 3.80 4.10 163,800 380,950 254,200 S 921,450 Subtotal Units Sold April 22 at $12 155,000 May 9 June 19 81.000 28.000 351,750 4.35 4.56 352,350 127690 $1,401,480 Subtotal Units Sold August 11 at $14 September 20 October 30 November 17 115,500 15,000 41,000 8,000 415,750 4.75 4.85 4.90 71.250 198,850 39,200 $1.710,780 Subtotal Units Sold December 21 at $16 21,500 415,750 (292.000) 123,750 Total available for sale Total units sold Fndina invantarv

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