Question
Saddlery Company sells leather saddles and equipment for horse enthusiasts. Saddlery uses the periodic inventory system. The following schedule relates to the companys inventory for
Saddlery Company sells leather saddles and equipment for horse enthusiasts. Saddlery uses the periodic inventory system. The following schedule relates to the companys inventory for the month of May:
Cost | Sales | |||||||
May 1 | Beginning inventory | 90 units | $49,500 | |||||
5 | Sale | 60 units | $42,900 | |||||
9 | Purchase | 30 units | $18,150 | |||||
13 | Purchase | 120 units | $79,200 | |||||
24 | Sale | 120 units | $92,400 | |||||
27 | Sale | 30 units | $26,400 | |||||
30 | Purchase | 45 units | $32,670 |
Calculate Saddlery Companys cost of goods sold, gross margin, and ending inventory using FIFO.
Cost of goods sold | $ | |
Gross margin | $ | |
Ending Inventory | $ |
Calculate Saddlery Companys cost of goods sold, gross margin, and ending inventory using weighted-average. (Round calculations for cost per unit to 2 decimal places, e.g. 10.52 and final answers to 2 decimal places, e.g. 610.52.)
Cost of goods sold | $ | |
Gross margin | $ | |
Ending Inventory | $ |
Which cost formula produced the higher gross margin? (Round answers to 2 decimal places, e.g. 61.05%.)
Gross Margin Ratio | ||
FIFO | % | |
Weighted-average | % |
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