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Cowboy Ice Cream Company (CIC) had the following purchases of ice cream bars for Year 1 of operations: Jan. 20 Purchased 490 units @ $
Cowboy Ice Cream Company (CIC) had the following purchases of ice cream bars for Year 1 of operations:
| Jan. 20 | Purchased | 490 | units | @ | $ | 8 | = | $ | 3,920 | |
| Apr. 21 | Purchased | 130 | units | @ | $ | 9 | = | 1,170 | ||
| July 25 | Purchased | 240 | units | @ | $ | 11 | = | 2,640 | ||
| Sept. 19 | Purchased | 80 | units | @ | $ | 13 | = | 1,040 | ||
During the year, CIC sold 780 ice cream bars for $18 each.
Required
- Compute the amount of ending inventory CIC would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average.
- Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.
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A Textbook Of Cost And Management Accounting
Authors: M N Arora
11th Edition
9390470501, 978-9390470501
