Question
Chapter 6 - MP06-01 iNVENTORY rECORDS Widget Tek Inc.s original accountant accepted a position with another firm and left in early March. You have been
Chapter 6 - MP06-01 iNVENTORY rECORDS
Widget Tek Inc.s original accountant accepted a position with another firm and left in early March. You have been asked to review the subsidiary inventory ledger record for Widget Tek Inc.s main product for March.
| Date | Inventory | ||
|---|---|---|---|
| Quantity | Unit Cost | Total Cost | |
| Mar. 1 | 850 | $98.00 | $83,300 |
| 1,275 | $95.00 | $121,125 | |
| Mar. 8 | 650 | $98.00 | $63,700 |
| Mar. 11 | 325 | $98.00 | $31,850 |
| Mar. 14 | 325 | $98.00 | $31,850 |
| 780 | $103.00 | $80,340 | |
| Mar. 22 | 260 | $98.00 | $25,480 |
| Mar. 25 | 260 | $98.00 | $25,480 |
| 2,000 | $104.00 | $208,000 | |
Study the inventory record for March and answer the questions that follow.
| 1. | Assuming that the product sells for $155 and that 80% of sales are on account, determine the gross profit from sales for March. $_______________ |
| 2. | Making the same assumptions as in (1), determine the ending inventory cost for March. $___________ |
| 3. | Which inventory method is being used? LIFO |
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Auditing Concepts And Methods
Authors: McGraw-Hill
1st Edition
0074701266, 978-0074701263
