Wilson Company sells a single product. At the beginning of the year, Wilson had 120 units in

Question:

Wilson Company sells a single product. At the beginning of the year, Wilson had 120 units in stock at a cost of $8 each. During the year Wilson purchased 850 more units at a cost of $8 each and sold 210 units at $13 each, 250 units at $15 each, and 360 units at $14 each.

Required:

1. Using the cost of goods sold model, what is the amount of ending inventory and cost of goods sold?

2. What is Wilson’s gross margin for the year?

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 =...