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.

	Inventory
Date	Quantity			Unit Cost			Total Cost
Mar. 1		850			$98			$83,300
		1,275			$95			$121,125
Mar. 8		650			$98			$63,700
Mar. 11		325			$98			$31,850
Mar. 14		325			$98			$31,850
		780			$103			$80,340
Mar. 22		260			$98			$25,480
Mar. 25		260			$98			$25,480
		1,500			$103			$154,500

Study the inventory record for March and answer the questions that follow.

1. Assuming that the product sells for $160 and that 85% 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