Case Defence sells smartphone cases and uses the perpetual inventory system. The following is information on the purchases and sales of Defender Box cases. On October 1, Case Defence had 29 units with a unit cost of $23.

Purchases Sales

Date Units Unit Cost Units Unit Price

Oct. 3 19 24

Oct. 6 24 $ 59

Oct. 12 29 26

Oct. 19 29 $ 59

Oct. 23 39 28

Oct. 30 34 $ 59

Oct. 31 24 29

Required:

1. Calculate the dollar value of cost of goods sold and ending inventory for the month of October using the following methods. (Do not round intermediate calculations. Round all weighted average unit costs to two decimal places and round all other numbers to the nearest dollar.)

2. Using your calculations in Part 1, complete the following table: (Do not round intermediate calculations. Round the final answers to nearest dollar.)

3-a. Which method produce the higher gross profit?

multiple choice 1

FIFO

Moving weighted average

3-b. Which method produce the higher ending inventory balance?

multiple choice 2

FIFO

Moving weighted average

4. Calculate the gross profit percentage for FIFO and Moving weighted average for the month of October. (Round the final answers to the nearest whole number.)

Case Defence sells smartphone cases and uses the perpetual inventory system. The following is information on the purchases and sales of Defender Box cases. On October 1, Case Defence had 29 units with a unit cost of $23.

Purchases Sales

Date Units Unit Cost Units Unit Price

Oct. 3 19 24

Oct. 6 24 $ 59

Oct. 12 29 26

Oct. 19 29 $ 59

Oct. 23 39 28

Oct. 30 34 $ 59

Oct. 31 24 29

Required:

1. Calculate the dollar value of cost of goods sold and ending inventory for the month of October using the following methods. (Do not round intermediate calculations. Round all weighted average unit costs to two decimal places and round all other numbers to the nearest dollar.)

2. Using your calculations in Part 1, complete the following table: (Do not round intermediate calculations. Round the final answers to nearest dollar.)

3-a. Which method produce the higher gross profit?

multiple choice 1

FIFO

Moving weighted average

3-b. Which method produce the higher ending inventory balance?

multiple choice 2

FIFO

Moving weighted average

4. Calculate the gross profit percentage for FIFO and Moving weighted average for the month of October. (Round the final answers to the nearest whole number.)