Question
CHECK FIGURES: 1. Ending inventory: a. $10,184.00; b. $11,590.60 Ontario Skateboard Company has the following inventory and purchases during the fiscal year ended December 31,
CHECK FIGURES: 1. Ending inventory: a. $10,184.00; b. $11,590.60
Ontario Skateboard Company has the following inventory and purchases during the fiscal year ended December 31, 2020.
Beginning inventory .................................................... 295 units @ $83/unit
March 10 purchased ................................................... 210 units @ $87/unit
March 20 sold ............................................................... 375 units @ $163/unit
May 13 purchased ....................................................... 277 units @ $81/unit
August 5 purchased .................................................... 260 units @ $67/unit
September 10 sold ...................................................... 515 units @ $163/unit
Ontario Skateboard Company employs a perpetual inventory system. Required 1. Calculate the dollar value of ending inventory and cost of goods sold using:
1.a. FIFO
b. Moving weighted average. Round all unit costs to two decimal places.
2. Using your calculations from Part 1, complete the following schedule:
FIFO Moving Weighted Average
Sales ..........................................................................................
Cost of goods sold.................................................................
Gross profit ..............................................................................
Analysis Component: How would the gross profits calculated in Part 2 above change if Ontario Skateboard Company had been experiencing increasing prices in the acquisition of additional inventory?
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