The following information relates to Good Kitchen Ltd.s inventory transactions during the month of March. All of
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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?
Ending InventoryThe ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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Related Book For
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley
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