The inventory records of Dahl Industries Limited (Dahl), an electronics distributor, reveal the following information for the year ended December 31,2020 presented in date order:

Item/Transaction	# of Units	Unit cost $	Total cost $
Opening inventory	4,000	7.00	28,000
Purchase	6,000	7.30	43,800
Sale at $16 per unit	(4,000)
Purchase	5,000	7.50	37,500
Sale at $21 per unit	(10,000)
Purchase	8,000	9.25	74,000

Dahl uses a perpetual inventory system for its only product.

Required:

1. )Calculate ending inventory, cost of goods sold and gross margin (# of units and $ amounts) for the year assuming the moving weighted average cost flow assumption is used.

b) If management of Dahl had adopted the FIFO cost flow assumption, would its gross margin have been greater, lesser or equal to that determined in part a) under the moving weighted average cost flow assumption? Why?

c) The selling price of the companys sole product dropped to $9.25/unit at the date for the year-end inventory count completed in part a). The company pays a sales commission of 3% of the sales price on each item sold. What effect, if any, would this information have on the companys 2020 Income Statement.