If your instructor has assigned the Appendix to this chapter, redo Problem AP7-5 assuming that the company uses a periodic inventory system.

In Problem AP4-5

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

Transcribed Image Text:

Units ,000 6,000 6,000 1.500 5,000 3,500 Cost/Unit $12.00 $12.50 Amount $48.000 75.000 July 1 Beginning inventory Purchase Sale Sale Purchase Sale $12.75 63.750