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1) Some of the information found on a detailed inventory card for 3T company for December is as follows: Issued # units Date Dec 1 2 7 10 13 18 20 23 27 28 31 (open) Instructions Received # units 1,150 1,050 600 1,000 1,300 1,500 $/unit $2.90 3.00 3.20 3.30 3.40 3.60 700 500 300 1,100 800 1,300 Note - received = "purchased" and issued means "sold" a. From the above data, using the 9 column schedule, calculate the COGS and ending inventory based on each of the following cost formulas: (Assume that perpetual inventory records are kept. Calculate unit costs to the nearest cent and ending inventory to the nearest dollar) 1. Weighted average cost 2.. First-in, first-out (FIFO) o. Based on your results in part (a), and assuming that the average selling price per unit during December was $8.00, prepare partial income statements up to the "gross profit on sales" line. Calculate the gross profit percentage under each inventory cost formula. Round your answers to one decimal place. Which GP is higher?

1) Some of the information found on a detailed inventory card for 3T company for December is as follows: Issued # units Date Dec 1 2 7 10 13 18 20 23 27 28 31 (open) Instructions Received # units 1,150 1,050 600 1,000 1,300 1,500 $/unit $2.90 3.00 3.20 3.30 3.40 3.60 700 500 300 1,100 800 1,300 Note - received = "purchased" and issued means "sold" a. From the above data, using the 9 column schedule, calculate the COGS and ending inventory based on each of the following cost formulas: (Assume that perpetual inventory records are kept. Calculate unit costs to the nearest cent and ending inventory to the nearest dollar) 1. Weighted average cost 2.. First-in, first-out (FIFO) o. Based on your results in part (a), and assuming that the average selling price per unit during December was $8.00, prepare partial income statements up to the "gross profit on sales" line. Calculate the gross profit percentage under each inventory cost formula. Round your answers to one decimal place. Which GP is higher?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1) Some of the information found on a detailed inventory card for 3T company for December is as follows: Issued # units Date Dec 1 2 7 10 13 18 20 23 27 28 31 (open) Instructions Received # units 1,150 1,050 600 1,000 1,300 1,500 $/unit $2.90 3.00 3.20 3.30 3.40 3.60 700 500 300 1,100 800 1,300 Note - received = "purchased" and issued means "sold" a. From the above data, using the 9 column schedule, calculate the COGS and ending inventory based on each of the following cost formulas: (Assume that perpetual inventory records are kept. Calculate unit costs to the nearest cent and ending inventory to the nearest dollar) 1. Weighted average cost 2.. First-in, first-out (FIFO) b. Based on your results in part (a), and assuming that the average selling price per unit during December was $8.00, prepare partial income statements up to the "gross profit on sales" line. Calculate the gross profit percentage under each inventory cost formula. Round your answers to one decimal place. Which GP is higher?
Transcribed Image Text:1) Some of the information found on a detailed inventory card for 3T company for December is as follows: Issued # units Date Dec 1 2 7 10 13 18 20 23 27 28 31 (open) Instructions Received # units 1,150 1,050 600 1,000 1,300 1,500 $/unit $2.90 3.00 3.20 3.30 3.40 3.60 700 500 300 1,100 800 1,300 Note - received = "purchased" and issued means "sold" a. From the above data, using the 9 column schedule, calculate the COGS and ending inventory based on each of the following cost formulas: (Assume that perpetual inventory records are kept. Calculate unit costs to the nearest cent and ending inventory to the nearest dollar) 1. Weighted average cost 2.. First-in, first-out (FIFO) b. Based on your results in part (a), and assuming that the average selling price per unit during December was $8.00, prepare partial income statements up to the "gross profit on sales" line. Calculate the gross profit percentage under each inventory cost formula. Round your answers to one decimal place. Which GP is higher?
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