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4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places. Sales Less: Cost of goods sold Gross profit Weighted Average FIFO O LIFO O FIFO O Specific Identification LIFO Weighted Average 5. The company's manager earns a bonus based on a percent of gross profit. Which method of Inventory costing produces the highest bonus for the manager? Specific Identification

4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places. Sales Less: Cost of goods sold Gross profit Weighted Average FIFO O LIFO O FIFO O Specific Identification LIFO Weighted Average 5. The company's manager earns a bonus based on a percent of gross profit. Which method of Inventory costing produces the highest bonus for the manager? Specific Identification

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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Date Activities Units Acquired at Cost Units Sold at Retail
January 1 Beginning inventory 580 units @ $40 per unit      
February 10 Purchase 420 units @ $38 per unit      
March 13 Purchase 180 units @ $25 per unit      
March 15 Sales       755 units @ $70 per unit
August 21 Purchase 190 units @ $45 per unit      
September 5 Purchase 560 units @ $41 per unit      
September 10 Sales       750 units @ $70 per unit
  Totals 1,930 units   1,505 units  
January 1 Date February 10 Average February 10 March 13 Average March 13 March 15 August 21 Average August 21 September 5 Average September 5 September 10 Totals Goods Purchased # of units Cost per unit Weighted Average Perpetual: Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold Inventory Balance Cost per unit # of units 580 at $ 40.00 = Inventory Balance $ 23,200.00
Transcribed Image Text:January 1 Date February 10 Average February 10 March 13 Average March 13 March 15 August 21 Average August 21 September 5 Average September 5 September 10 Totals Goods Purchased # of units Cost per unit Weighted Average Perpetual: Cost of Goods Sold # of units sold Cost per unit Cost of Goods Sold Inventory Balance Cost per unit # of units 580 at $ 40.00 = Inventory Balance $ 23,200.00
Date January 1 February 10 March 13 August 21 September 5 Total Sales Less: Cost of goods sold Gross profit Goods Available for Sale # of units Cost per unit O Weighted Average O LIFO O FIFO O Specific Identification FIFO Specific Identification Cost of Goods # of units Available for Sale sold Cost of Goods Sold < Weighted Average LIFO 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places. Weighted Average Cost per unit Cost of Goods Sold # of units in ending inventory Specific Identification > Specific Identification Ending Inventory Cost per unit Ending Inventory 5. The company's manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager?
Transcribed Image Text:Date January 1 February 10 March 13 August 21 September 5 Total Sales Less: Cost of goods sold Gross profit Goods Available for Sale # of units Cost per unit O Weighted Average O LIFO O FIFO O Specific Identification FIFO Specific Identification Cost of Goods # of units Available for Sale sold Cost of Goods Sold < Weighted Average LIFO 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places. Weighted Average Cost per unit Cost of Goods Sold # of units in ending inventory Specific Identification > Specific Identification Ending Inventory Cost per unit Ending Inventory 5. The company's manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager?
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