Buntzell Industrial Supplies distributes industrial equipment. The company’s fiscal year ends on March 31, 2023. One department in the company had 50 industrial sinks that cost $540 each on hand at January 1, 2023. During the quarter, the department purchased merchandise on account as follows:

Sales for each month in the quarter were as follows:

Operating expenses in the quarter were $95,000.

Assume that the company uses a perpetual inventory system. Also assume that monthly purchases of inventory occur on the first day of each month.

Required1. Determine the cost of the department’s ending inventory of sinks at March 31, 2023, under 

(a) Moving-weighted-average cost and 

(b) FIFO cost. Round the average unit cost to the nearest cent and all other amounts to the nearest dollar.

2. Prepare the department’s multi-step income statement for the quarter ended March 31, 2023, under each method described in Requirement 1.

Transcribed Image Text:

January February March Units 120 24 48 Unit Cost $585 360 450 Total $70,200 8,640 21,600