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Can someone answer this question, especially part C Apply perpetual average cost. E6.6 (LO 2, 3) Basis Furniture Ltd. uses a perpetual inventory system and
Can someone answer this question, especially part C
Apply perpetual average cost. E6.6 (LO 2, 3) Basis Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June 1, of 500 bookcases at a cost of $125 each. During June, the company had the following purchases and sales of bookcases: Purchases Sales Date Units Unit Cost Units Unit Price June 6 1,200 $127 10 1,000 $200 128 14 1,800 16 1,600 205 26 1,000 129 Instructions a. Determine the cost of goods sold and the cost of the ending inventory using the average cost formula. (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.) b. Calculate Basis Furniture's gross profit and gross profit margin for the month of June. c. Is the gross profit determined in part (b) higher or lower than it would be if Basis Furniture had used FIFO? ExplainStep by Step Solution
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