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Priya, a small business owner who sells only one product, started March with no inventory. Over the course of the month, she made the following
Priya, a small business owner who sells only one product, started March with no inventory. Over the course of the month, she made the following purchases:
Date | Number of units purchased | Total cost of order |
March 1 | 10 | $920 |
March 10 | 5 | $480 |
March 18 | 8 | $760 |
March 25 | 10 | $930 |
March 30 | 3 | $300 |
Here is Priyas sales data:
Date | Number of units sold | Total sales value |
March 4 | 2 | $300 |
March 7 | 4 | $520 |
March 8 | 1 | $170 |
March 11 | 3 | $440 |
March 16 | 2 | $290 |
March 20 | 5 | $600 |
March 24 | 4 | $510 |
March 27 | 6 | $620 |
March 31 | 4 | $520 |
- Assuming Priya uses the first-in-first-out inventory costing method, what is her gross margin?
- Assuming Priya uses the moving-weighted-average inventory costing method, what is the value of her ending inventory?
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