account inventry Dutch Truck Sales sells semitrailers. The current inventory includes the following five semitrailers (identical except for paint color) along withpurchase dates and costs:Semitrailer Purchase Date Cost1April 3, 2008$73,0002April 10, 2008 70,0003April 10, 2008 71,0004May 4, 200877,0005(лMay 12, 200878,500On May 20, 2008, a trucking firm purchased semitrailer 3 from Dutch for $86,000.1. Compute the gross margin on this sale assuming Dutch uses:(a) FIFO inventory method.(b) LIFO inventory method.(c) Specific identification method.2. Which inventory method do you think Dutch should use? Why?

Step 1: Given DataSemitrailer sold: Semitrailer 3Selling price: $86,000Inventory costs:Semitrailer…

Answered: Dutch Truck Sales sells semitrailers.…

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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During the year, Wright Company sells 435 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 40 $ 80 $ 3,200 May. 5 Purchase 240 83 19,920 Nov. 3 Purchase 180 88 15,840 460 $ 38,960 Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO. LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units Cost per unit Cost of Goods Sold # of units Cost per unit Ending Inventory Beginning Inventory not attempted not attempted $0 not attempted $0 $0 not attempted Purchases: May 5 not attempted not attempted 0 not attempted $0 0 not attempted Nov. 3 not attempted not attempted 0 not attempted $0 0 not attempted Total 0…
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During the year, Wright Company sells 510 remote-control airplanes for $100 each. The company has the following inventory purchase transactions for the year. Number of Unit Total Date January 1 Transaction, Beginning inventory Units Cost Cost 50 $64 $3,200 May 5 Purchase 290 67 19,430 240 580 72 17,280 $39,910 November 3 Purchase Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO. Cost of Goods Available for Sale Number Cost per FIFO Cost of Goods Number of units unit Available for Sale of units Cost of Goods Sold Cost per unit Cost of Goods Number Sold of units Ending Inventory Cost per unit Ending Inventory Beginning Inventory 50 $ 64 $ 3,200 $ 이 Purchases May 5 290 67 19,430 0 November 3 240 72 17.280 0 Total 580 $ 39,910 ° $ о $ 0
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