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During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales as follows (14 marks): Units Cost per unit Begin
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales as follows (14 marks):
|
| Units | Cost per unit |
| Begin Inventory | 100 | 12 |
Jan 5 | Sale | 50 |
|
10 | Purchase | 70 | 16 |
15 | Sale | 25 |
|
25 | Sale | 35 |
|
Required:
- Prepare a schedule showing cost of goods sold and ending inventory using weighted average.
- Prepare a schedule showing cost of goods sold and ending inventory using First In First Out
- Compute gross profit under for a and b. Selling price for items is $50 pet unit.
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