100 units 200 units 200 units 100 units During 2017, Alpha Limited and Beta Limited made the following identical purcha Date of Units Purchased Cost Per Unit Purchase Jun 2 Jun 9 Jun 16 Jun 23 मे $10.00 $10.50 Each company sold 400 units for $20 each, but Alpha uses average cost inventory valuation and Beta uses FIFO inventory valuation. Assume there was no beginning inventory. $11.50 $12.00 goods lculate the cost of goods sold for each company late the ending inventory in units and dollars for each company re the respective gross margins and which company will show the best lity. sobt
100 units 200 units 200 units 100 units During 2017, Alpha Limited and Beta Limited made the following identical purcha Date of Units Purchased Cost Per Unit Purchase Jun 2 Jun 9 Jun 16 Jun 23 मे $10.00 $10.50 Each company sold 400 units for $20 each, but Alpha uses average cost inventory valuation and Beta uses FIFO inventory valuation. Assume there was no beginning inventory. $11.50 $12.00 goods lculate the cost of goods sold for each company late the ending inventory in units and dollars for each company re the respective gross margins and which company will show the best lity. sobt
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Do not give answer in image formate
Transcribed Image Text:a)
Purchase
Jun 2
Jun 9
Jun 16
Jun 23
100 units
200 units
200 units
100 units
$10.00
$10.50
$11.50
$12.00
2. During 2017, Alpha Limited and Beta Limited made the following identical purchases:
Date of
Units Purchased
Cost Per Unit
inventory.
Each company sold 400 units for $20 each, but Alpha uses average cost inventory
valuation and Beta uses FIFO inventory valuation. Assume there was no beginning
a. Calculate the cost of goods sold for each company
c.
b. Calculate the ending inventory in units and dollars for each company
profitability.
What are the respective gross margins and which company will show the best
goods
sobt
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