Tool Depot sells the latest selection of power tools and uses a perpetual inventory system. The following

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Tool Depot sells the latest selection of power tools and uses a perpetual inventory system. The following is information on the purchases and sales of the power drills, €œM1500.€ On November 1, Tool Depot had 150 units with a unit cost of $49.
Purchases Sales Unit Cost Units Unit Price Date Units $100 Nov. 4 100 Nov. 6 200 47 Nov. 16 350 45 $100 Nov. 20 275 Nov.


Required
1. Calculate the cost of goods sold and ending inventory 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 your calculations from Part 1, complete the following schedule:
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 both methods for the month of November. 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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