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I need help with 11-17 Use the following to answer questions 7 -17 During September, KM Company sells 9,500 watches for $320.00 each. The company
I need help with 11-17
Use the following to answer questions 7 -17 During September, KM Company sells 9,500 watches for $320.00 each. The company has the following inventory purchase transactions for September: #of Units Unit cost Total Cost Date Transaction $215.00 $150,500 1-Sep Beginning Inventory 700 $216.00 7-Sep Purchase 6,000 1,296,000 24-Sep $220.00 Purchase 3,300 726,000 $2,172,500 10,000 For questions 11 - 13 assume the company uses Last-in, First-out (LIFO) inventory valuation. Calculate ending inventory (LIFO) 11. $ 12. $ Calculate cost of goods sold (LIFO) Calculate gross profit (LIFO) 13. $ For questions 14 - 16 assume the company uses Weighted Average cost inventory valuation. Calculate ending inventory (WA) 14. $ Calculate cost of goods sold (WA) 15. $ Calculate gross profit (WA) 16. $ 17. Based on the above, which method would show a larger net income number? (FIFO, LIFO or WA)Step by Step Solution
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