Smule ON hite wewe Re De C SALD We will begin Ene's journal entries for the sale Journal Entry Accounts Date Debit Credit April 30 Next, journalize the cost of goods sold Journal Entry Date Accounts Debit Credit April 30 At this tim On May 4th. McMurray Jewellers returned unsuitable merchandise. Prepare the journal entry for the return Do not update Cost of Goods Sold at this time Journal Entry Accounts Date Debit Credit May 4 Now, we can update Cost of Goods Sold for the return Journal Entry Accounts Date Debit Credit May .... Now, we can update Cost of Goods Sold for the return Journal Entry Date Accounts Debit Credit May 4 Finally, journalize the receipt of cash from McMurray Jewellers. Journal Entry Date Accounts Debit Credit May 14 = Quiz: Final Exam The Lyric carries a large inventory of guitars and other musical instruments. The store uses a perpetual inventory system. Company records indicate the following for a particular line of guitars. Date Item Quantity Unit Cost Apr. 1 Balance 5 $980 6 Sale 3 8 Purchase 14 916 17 Sale 4 30 Purchase 9 916 The sale price of each guitar was $1,620. (Click the icon to view the cost of goods sold calculation from the FIFO perpetual inventory record.) Click the icon to view the cost of goods sold calculation from the moving-weighted-average-cost perpetual inventory record.) Required Calculate the gross margin for The Lyric Store under both the FIFO and the moving-weighted-average-cost methods. Explain why the gross margin is higher under the moving-weighted-average-cost method perpet Moving-Weighted-Average Cost Perpetual Inventory Record g-wei ng-weid Date Quantity Unit Cost Total Cost Apr. 6 3 980.00 2,940 1,960 4 17 924.00 Total 6,636 Print Done FIFO Perpetual Inventory Record Date Quantity Unit Cost Total Cost Apr. 6 3 980 2,940 17 980 1,960 N N 17 916 1,832 Total 7 6.732 Print Done Gross margin under FIFO is $ Gross margin under weighted-average-cost is The moving-weighted average-cost method produces a cost of goods sold (and therefore a higher gross margin) because unit inventory costs are in this scenario. While counts the earlier inventory first, the method uses all inventory on hand in determining the cost of goods sold. Smule ON hite wewe Re De C SALD We will begin Ene's journal entries for the sale Journal Entry Accounts Date Debit Credit April 30 Next, journalize the cost of goods sold Journal Entry Date Accounts Debit Credit April 30 At this tim On May 4th. McMurray Jewellers returned unsuitable merchandise. Prepare the journal entry for the return Do not update Cost of Goods Sold at this time Journal Entry Accounts Date Debit Credit May 4 Now, we can update Cost of Goods Sold for the return Journal Entry Accounts Date Debit Credit May .... Now, we can update Cost of Goods Sold for the return Journal Entry Date Accounts Debit Credit May 4 Finally, journalize the receipt of cash from McMurray Jewellers. Journal Entry Date Accounts Debit Credit May 14 = Quiz: Final Exam The Lyric carries a large inventory of guitars and other musical instruments. The store uses a perpetual inventory system. Company records indicate the following for a particular line of guitars. Date Item Quantity Unit Cost Apr. 1 Balance 5 $980 6 Sale 3 8 Purchase 14 916 17 Sale 4 30 Purchase 9 916 The sale price of each guitar was $1,620. (Click the icon to view the cost of goods sold calculation from the FIFO perpetual inventory record.) Click the icon to view the cost of goods sold calculation from the moving-weighted-average-cost perpetual inventory record.) Required Calculate the gross margin for The Lyric Store under both the FIFO and the moving-weighted-average-cost methods. Explain why the gross margin is higher under the moving-weighted-average-cost method perpet Moving-Weighted-Average Cost Perpetual Inventory Record g-wei ng-weid Date Quantity Unit Cost Total Cost Apr. 6 3 980.00 2,940 1,960 4 17 924.00 Total 6,636 Print Done FIFO Perpetual Inventory Record Date Quantity Unit Cost Total Cost Apr. 6 3 980 2,940 17 980 1,960 N N 17 916 1,832 Total 7 6.732 Print Done Gross margin under FIFO is $ Gross margin under weighted-average-cost is The moving-weighted average-cost method produces a cost of goods sold (and therefore a higher gross margin) because unit inventory costs are in this scenario. While counts the earlier inventory first, the method uses all inventory on hand in determining the cost of goods sold