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The following represents information for Company X for a period of four years Year Purchases (units) Purchases (cost/unit) Sales (units) Sales (per unit) 2000 12,000
The following represents information for Company X for a period of four years
Year | Purchases (units) | Purchases (cost/unit) | Sales (units) | Sales (per unit) | ||
2000 | 12,000 | $ | 10 | 9,000 | $ | 15 |
2001 | 11,000 | $ | 11 | 10,000 | $ | 17 |
2002 | 10,000 | $ | 12 | 11,000 | $ | 19 |
2003 | 9,000 | $ | 13 | 12,000 | $ | 21 |
42,000 | 42,000 | |||||
What is cost of goods sold for Year 2000 and what is the gross margin for Year 2001 using FIFO?
Multiple Choice
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Cost of goods sold is $90,000, Gross Margin is $63,000
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Cost of goods sold $90,000, Gross Margin $45,000
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Cost of goods sold is $110,000, Gross Margin is $60,000
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None of the other alternatives are correct
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Cost of goods sold is $90,000, Gross Margin is $60,000
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