The Soft Touch Company sells leather furniture. The following schedule relates to the company's 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:

Soft Touch uses the perpetual inventory system. Required:
a. Calculate the cost of goods sold and ending inventory under each of the following costing assumptions:
1. FIFO
2. Moving average
b. Determine the gross margin under each of the costing assumptions calculated in part "a." Which of the costing assumptions 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 =...