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A company had the following inventory activity during May: Units Unit Cost Total Cost Unit Price Beginning inventory 100 $20.00 $2,000 Purchase: May 3 900
A company had the following inventory activity during May:
| Units | Unit Cost | Total Cost | Unit Price | ||
| Beginning inventory | 100 | $20.00 | $2,000 | ||
| Purchase: | May 3 | 900 | $21.00 | 18,900 | |
| Sale: | May 5 | (900) | $30.00 | ||
| Purchase: | May 15 | 1,000 | $21.00 | 21,000 | |
| Sale: | May 28 | (900) | $30.00 | ||
If the company uses a perpetual system and the FIFO cost formula, what is the gross margin on the May 5 sale closest to?
|
| $6,100 |
|
| $8,100 |
|
| $8,200 |
|
| $8,550 |
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Understanding financial statements
Authors: Lyn M. Fraser, Aileen Ormiston
9th Edition
136086241, 978-0136086246
