During 2017, Fresh Express Company sold 2,500 units of its product on September 20 and 3,000 units

Question:

During 2017, Fresh Express Company sold 2,500 units of its product on September 20 and 3,000 units on December 22, all at a price of $90 per unit. Incurring operating expenses of $14 per unit sold, it began the year with and made successive purchases of the product as follows:
January 1 beginning inventory.. Purchases: February 20.. May 16 .. December 11... Total 600 units $35 per unit 1,500 uni


Required

Prepare a comparative income statement for the company, showing in adjacent columns the profits earned from the sale of the product, assuming the company uses a perpetual inventory system and prices its ending inventory on the basis of:
a. FIFO 

b. Moving weighted average cost. Round all unit costs to two decimal places.
Analysis Component: If the manager of Fresh Express Company earns a bonus based on a percentage of gross profit, which method of inventory costing will she prefer?

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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