**Joe's Products Co. Inventory Transactions and Analysis****Purchase Transactions Summary (First Quarter):**| Date | Transaction | Number of Units | Per Unit ||------------|--------------|-----------------|----------|| Jan. 1 | Beg. Inv. | 50 | $15 || Jan. 15 | Purchase | 100 | $18 || Feb. 15 | Purchase | 120 | $21 || March 15 | Purchase | 80 | $25 |Joe's Products sold 170 units at $30 per unit during the quarter. Of the units sold, 20 came from beginning inventory, 30 from the Feb. 15 purchase, and 50 from the March 15 purchase, with the remaining units coming from the Jan. 15 purchase.**Inventory and Financial Analysis:**The table below shows the Cost of Goods Sold (COGS), Ending Inventory, and Gross Margin using four different inventory flow assumptions:| | Specific Identification | First-In, First-Out | Last-In, First-Out | Weighted Average Cost ||------------------------------------|-------------------------|---------------------|--------------------|-----------------------|| **Cost of Goods Sold** | $3,640 | $2,970 | $3,890 | $3,434 || **Ending Inventory** | $3,430 | $4,100 | $3,180 | $3,636 || **Gross Margin** | $1,460 | $2,130 | $1,210 | $1,666 |This analysis helps determine the financial impact of different inventory accounting methods on cost, inventory value, and profitability.

Inventory: It refers to the items held by an organization which were in various forms like raw…

Joe's Products Co. had the following purchase transaction during the first quarter of its fiscal year: Number Per of Units Unit Date Transaction Jan. 1 Beg. Inv. 50 $15 Jan. 15 Purchase 100 $18 Feb. 15 Purchase 120 $21 March 15 Purhcase 80 $25 Joe's Products sold 170 units at $30/unit during the quarter. Of the untis sold, 20 came from beginning inventory, 30 came from the Feb. 15 purchase, and 50 came form the March 15 purchase with the remaining units coming from Jan. 15. Fill out the table below with the COGS, Ending Inventory, and Gross Margin under the four different inventory flow assumptions: Specific First-In, Last-In, Weighted Identification First-Out First-Out Average Cost Cost of Goods Sold 3,640 2,970 3,890 3,434 Ending Inventory 3,430 4,100 3,180 3,636 Gross Margin 1,460 2,130 1,210 1,666

Joe's Products Co. had the following purchase transaction during the first quarter of its fiscal year: Number Per of Units Unit Date Transaction Jan. 1 Beg. Inv. 50 $15 Jan. 15 Purchase 100 $18 Feb. 15 Purchase 120 $21 March 15 Purhcase 80 $25 Joe's Products sold 170 units at $30/unit during the quarter. Of the untis sold, 20 came from beginning inventory, 30 came from the Feb. 15 purchase, and 50 came form the March 15 purchase with the remaining units coming from Jan. 15. Fill out the table below with the COGS, Ending Inventory, and Gross Margin under the four different inventory flow assumptions: Specific First-In, Last-In, Weighted Identification First-Out First-Out Average Cost Cost of Goods Sold 3,640 2,970 3,890 3,434 Ending Inventory 3,430 4,100 3,180 3,636 Gross Margin 1,460 2,130 1,210 1,666

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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