Case Defence sells smart phone cases and uses the perpetual inventory system. The following is information on
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1. Calculate the dollar value of cost of goods sold and ending inventory for the month of October using the following methods.
a. FIFO
b. Moving weighted average. Round all unit costs to two decimal places and round all other numbers to the nearest dollar.
2. Using the calculations in Part 1, complete the following table:
3. Does using FIFO or Moving weighted average produce
a. A higher gross profit? b. A higher ending inventory balance?
4. Calculate the gross profit percentage for FIFO and Moving weighted average for the month of October. Round to the nearest percentage.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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Related Book For
Fundamental Accounting Principles Volume 1
ISBN: 9781259259807
15th Canadian Edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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