The Music carries a large inventory of guitars and other musical instruments. The store uses a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Music carries a large inventory of guitars and other musical instruments. The store uses a perpetual inventory system Company records indicate the following for a particular line of guitars Date Apr 1 6 8 17 30 Item Balance Salo Purchase Sale Purchase Quantity 3 1 14 4 9 Unit Cost $1,000 924 924 The sale price of each guitar was $1,000 (Click the icon to view the cost of goods sold calculation from the FIFO perpetual inventory record.) (Click the icon to view the cost of goods sold calculation from the moving-weighted-average-cost perpetual inventory record.) Required Calculate the gross margin for The Music Store under both the FIFO and the moving weighted-average-cost methods. Explain why the gross margin is higher under the moving weighted average cost method Gross margin under FIFO IS Gross margin under weighted average cost is $ cost of good The moving-weighted average cost method produces a therefore a higher gross margin) because unit inventory costs are scenano While of goods sold counts the earlier inventory method uses all inventory on hand in deter Date Apr. 1 6 8 17 30 rice of each guitar was $1,6 the icon to view the cost record.) the icon to view the cost g-weighted-average-cost he gross margin for The Mu -weighted-average-cost me -weighted-average-cost me Item Balance Sale Quantity 3 FIFO Perpetual Inventory Record Apr Date Total Unit Cost $1,000 6 17 17 Quantity Unit Cost Total Cost 1 1,000 1,000 1,000 924 Print 2 2 5 Done 2,000 1,848 4,848 Gross margin under weighte X ving-weighted-averag e a higher gross mar b. While s sold carries a large inventory of guitars and other musical instruments. The store uses a ventory system. Company records indicate the following for a particular line of guitars. Unit Cost $1,000 ce of e he ico ecord he ico -weig e gros weight weight Date Apr 1 6 8 Apr. Item Balance: Sale Purchase Total Date Quantity 3 1 14 Moving-Weighted-Average Cost Perpetual Inventory Record 6 17 Quantity 1 41 924 5 Unit Cost Total Cost 1,000.00 1,000 933.50 2,000 Print 4,734 Gross margin unde Gross margin unde Done The moving-weigh The Music carries a large inventory of guitars and other musical instruments. The store uses a perpetual inventory system Company records indicate the following for a particular line of guitars Date Apr 1 6 8 17 30 Item Balance Salo Purchase Sale Purchase Quantity 3 1 14 4 9 Unit Cost $1,000 924 924 The sale price of each guitar was $1,000 (Click the icon to view the cost of goods sold calculation from the FIFO perpetual inventory record.) (Click the icon to view the cost of goods sold calculation from the moving-weighted-average-cost perpetual inventory record.) Required Calculate the gross margin for The Music Store under both the FIFO and the moving weighted-average-cost methods. Explain why the gross margin is higher under the moving weighted average cost method Gross margin under FIFO IS Gross margin under weighted average cost is $ cost of good The moving-weighted average cost method produces a therefore a higher gross margin) because unit inventory costs are scenano While of goods sold counts the earlier inventory method uses all inventory on hand in deter Date Apr. 1 6 8 17 30 rice of each guitar was $1,6 the icon to view the cost record.) the icon to view the cost g-weighted-average-cost he gross margin for The Mu -weighted-average-cost me -weighted-average-cost me Item Balance Sale Quantity 3 FIFO Perpetual Inventory Record Apr Date Total Unit Cost $1,000 6 17 17 Quantity Unit Cost Total Cost 1 1,000 1,000 1,000 924 Print 2 2 5 Done 2,000 1,848 4,848 Gross margin under weighte X ving-weighted-averag e a higher gross mar b. While s sold carries a large inventory of guitars and other musical instruments. The store uses a ventory system. Company records indicate the following for a particular line of guitars. Unit Cost $1,000 ce of e he ico ecord he ico -weig e gros weight weight Date Apr 1 6 8 Apr. Item Balance: Sale Purchase Total Date Quantity 3 1 14 Moving-Weighted-Average Cost Perpetual Inventory Record 6 17 Quantity 1 41 924 5 Unit Cost Total Cost 1,000.00 1,000 933.50 2,000 Print 4,734 Gross margin unde Gross margin unde Done The moving-weigh
Expert Answer:
Answer rating: 100% (QA)
FIFO DATE QUANTITY UNIT COST TOTAL COST QUANTITY UNIT COST TOTAL COST QUANTITY UNIT COST TOTAL COST ... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
Posted Date:
Students also viewed these accounting questions
-
Creative Kaos Store carries a large inventory of guitars and other musical instruments. The store uses the FIFO method and a perpetual inventory system. Company records indicate the following for a...
-
Describe the implications of horizontal gene transfer in the evolution and diversification of prokaryotes and archaea.
-
Kaleo Golf Superstore carries an inventory of putters and other golf clubs. The sales price of each putter is $128. Company records indicate the following for a particular line of Kaleo Golf...
-
Q Ltd prepares accounts to 31 March each year. The company made the following two disposals of chargeable assets during the year to 31 March 2021: (1) 1,250 shares in Hentic Ltd were sold on 28 June...
-
Consider again the one-way ANOVA hypothesis test described in Problem 7. How could blocking be employed to control for a factor that is not of primary interest yet could introduce an unwanted source...
-
The number of accidents that occur on a busy stretch of highway is a random variable. a. What are the possible values of this random variable? b. Are the values countable? Explain. c. Is there a...
-
On January 2, 20x6, the Healey Company made several long-term investments in the voting stock of various companies. It purchased 10,000 shares of Zima at $4.00 a share, 15,000 shares of Kane at $6.00...
-
Northern Pacific Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar heating system. To meet this demand, management plans to expand production capacity by 40 percent with...
-
Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: Pay $ 2 9 , 5 0 0 for the car today. Pay $ 2 , 9 0 0 at the end of each...
-
Keeper Corporations income statement for the year ended June 30, 2014, and its comparative balance sheets for June 30, 2014 and 2013 follow. Keeper Corporation Income Statement For the Year Ended...
-
In order to buy a piece of equipment, a company is paying $10,000 per year for the next 8 years. At an interest rate of 12% per year compounded monthly, what is the future worth of the equipment at...
-
Prepare the journal entries for the following transactions: June 1 4 - Sold 6 units of inventory to Phil Connors. The sales price was $ 6 0 per unit and the cost of the units was $ 4 0 per unit. The...
-
Innovative Technologies Inc. assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $ 7 5 , 0 0 0 , the accumulated...
-
How is finance disrupted with this ecosystem? Explain briefly
-
List five with an explanation of the obligatory conditions of Zakat to be eligible as alms asset?
-
A student sits on a freely rotating stool holding two weights, each of mass 2.98 kg. When his arms are extended horizontally, the weights are 0.95 m from the axis of rotation and he rotates with an...
-
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completi Prepare journal entries to record the following merchandising...
-
Determine the optimal use of Applichem's plant capacity using the Solver in Excel.
-
Open the following three-column ledger accounts for Yarrow Strategic Consulting at May 1, 2017: Cash, #1100; Accounts Receivable, #1300; Office Supplies, #1500; Office Furniture, #1800; Accounts...
-
A company received the following notes during 2017. The notes were discounted on the dates and at the rates indicated. Explanations are not required. 1. Determine the due date and maturity value of...
-
Journalize the entries for the following adjustments at January 31, the end of the accounting period: a. Amortization, $5,000. b. Prepaid insurance used, $500. c. Interest expense accrued, $400. d....
-
Prepare a CVP graph (Learning Objective 2)} Use the information from the Bay Cruiseline Data Set. Draw a graph of Bay Cruiseline's CVP relationships. Include the sales revenue line, the fixed expense...
-
Interpret a CVP graph (Learning Objective 2)} Describe what each letter stands for in the CVP graph. D 300 200 F C G 150 H B A E The breakeven point is atunits and at J. dollars of sales.
-
Compute weighted-average contribution margin (Learning Objective 4) Use the information from the Bay Cruiseline Data Set. Suppose Bay Cruiseline decides to offer two types of dinner cruises: regular...
Study smarter with the SolutionInn App