The company uses the perpetual inventory method and started the month of November with 500 units of inventory at a cost of $3 each. Purchases November 5, 500 units at $5 each November 18, 500 units at $6 each November 29, 500 units at $9 each Sales November 12, 400 units sold at $14 each November 25, 900 units sold at $14 each 1. Use the following format to set up this inventory costing problem, as shown in Video #2. Inventory Date Cost per Unit Units Total Cost Date Units Total Cost Beg Balance Units Cost Beginning Balance + Purchases Goods Available for Sale - Sold Ending Balance 2. Use the moving weighted average method to calculate cost of goods sold and ending inventory. 3. Calculate the company's gross margin based on using the average cost method.
The company uses the perpetual inventory method and started the month of November with 500 units of inventory at a cost of $3 each. Purchases November 5, 500 units at $5 each November 18, 500 units at $6 each November 29, 500 units at $9 each Sales November 12, 400 units sold at $14 each November 25, 900 units sold at $14 each 1. Use the following format to set up this inventory costing problem, as shown in Video #2. Inventory Date Cost per Unit Units Total Cost Date Units Total Cost Beg Balance Units Cost Beginning Balance + Purchases Goods Available for Sale - Sold Ending Balance 2. Use the moving weighted average method to calculate cost of goods sold and ending inventory. 3. Calculate the company's gross margin based on using the average cost method.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 2PB: LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a...
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