Shaunessy Auto Supplies made the following purchases and sales of windshield wipers during March: Required 1. Assuming Shaunessy Auto Supplies uses a perpetual inventory system;

Question

98 users unlocked this solution today!

Shaunessy Auto Supplies made the following purchases and sales of windshield wipers during March:

Required
1. Assuming Shaunessy Auto Supplies uses a perpetual inventory system; calculate the cost of goods sold during March using
(a) The moving-weighted-average-cost method
(b) FIFO.
2. Now assume Shaunessy Auto Supplies uses a periodic inventory system. Calculate the cost of goods sold during March using
(a) The weighted-average-cost method
(b) FIFO.
3. What do you notice when you compare the FIFO results from Requirement 1 and Requirement 2? Also include a computation of gross margin based on the periodic method in this comparison.

Unit Cost Unit Sale Price Units 10 70 50 Mar. 1 Sale $16 10 14 20 10 100 125 16 Sale