If your instructor has assigned the Appendix to this chapter, redo Problem AP7-6B assuming that the company uses a periodic inventory system. Round weighted-average per unit cost to two decimal places.

Data from AP7-6B

The following information relates to Good Kitchen Ltd.’s inventory transactions during the month of March.

All of the units sold were priced at $65 per unit.

Required 

a. Good Kitchen Ltd. uses the perpetual inventory system. Calculate Good Kitchen’s cost of goods sold, gross margin, and ending inventory for the month of March using:

i. FIFO

ii. Weighted-average. Round weighted-average per unit cost to two decimal places.

b. Which of the cost formulas would produce the higher gross margin?

Transcribed Image Text:

Units Amount Cost/Unit Mar. 1 Beginning inventory 6,000 4,000 2,500 $18.00 $108,000 Sale 12 $ 50,000 Purchase $20.00 $20.00 16 Purchase 800 2,500 4,000 3,500 $ 16,000 18 Sale Purchase 27 29 $25.00 $100,000 Sale