Case Defence sells smart phone cases and uses the perpetual inventory system. The following is information on

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Case Defence sells smart phone cases and uses the perpetual inventory system. The following is information on the purchases and sales of €œDefender Box€ cases. On October 1, Case Defence had 20 units with a unit cost of $14.
Purchases Sales Units Unit Cost Units Unit Price Date Oct. 3 10 15 Oct. 6 $50 15 Oct. 12 20 17 $50 20 Oct. 19 Oct. 23 30
Required
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:
Moving Weighted Average FIFO Sales... Cost of goods sold Gross profit...


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.

Ending Inventory
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  book-img-for-question

Fundamental Accounting Principles Volume 1

ISBN: 9781259259807

15th Canadian Edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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