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Suppose a Waidorf store in Ottawa, Ontario, ended October 2020 with 700,000 units of merchandise that cost an average of $9 each. Suppose the store
Suppose a Waidorf store in Ottawa, Ontario, ended October 2020 with 700,000 units of merchandise that cost an average of $9 each. Suppose the store then sold 650,000 units for $6.2 million during November. Further, assume the store made two large purchases during November as follows: November 5 140,000 units @ $8=$1,120,000 27 420,000 units @ $ 7=$2,940,000 Required At November 30, the store manager needs to know the store's gross profit under both FIFO and weighted-average cost. Supply this inlormation. Waldorf uses the periodic inventory system. What caused the FIFO and weighted-average cost gross profit figures to differ
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