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.

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

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 Inventory
The 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  book-img-for-question

Understanding Financial Accounting

ISBN: 9781119406921

2nd Canadian Edition

Authors: Christopher D. Burnley

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