The Soft Touch Company sells leather furniture. The following schedule relates to the companys inventory for the

Question:

The Soft Touch Company sells leather furniture. The following schedule relates to the company€™s inventory for the month of April:

Required:
a. Calculate Soft Touch Company€™s cost of goods sold, gross margin, and ending inventory using:
i. FIFO
ii. Weighted-average
b. Which cost formula produced 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 =...