Metlock Company sells discounted shoes to the fashion-oriented consumer. The following schedule relates to the company's Inventory for the month of March: March 1 7 Beginning inventory Purchase 8 Purchase 15 Sale 20 Sale 25 27 Sale Purchase 3.300 units 1.100 units 1.650 units 3.850 units 770 units 550 units 1,320 units Cost $97,350 44,000 82.500 Metlock Company uses the perpetual Inventory system. 16,390 Sales $346.500 57,750 79,200 Calculate Metlock Company's gross margin ratio using: (Round answers to 2 decimal places, eg 61.05%) L. FIFO ii. Weighted-average FIFO Weighted-average Gross Margin Ratio % % 96 Which cost formula produced the higher gross margin? produces the higher gross margin.
Metlock Company sells discounted shoes to the fashion-oriented consumer. The following schedule relates to the company's Inventory for the month of March: March 1 7 Beginning inventory Purchase 8 Purchase 15 Sale 20 Sale 25 27 Sale Purchase 3.300 units 1.100 units 1.650 units 3.850 units 770 units 550 units 1,320 units Cost $97,350 44,000 82.500 Metlock Company uses the perpetual Inventory system. 16,390 Sales $346.500 57,750 79,200 Calculate Metlock Company's gross margin ratio using: (Round answers to 2 decimal places, eg 61.05%) L. FIFO ii. Weighted-average FIFO Weighted-average Gross Margin Ratio % % 96 Which cost formula produced the higher gross margin? produces the higher gross margin.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Metlock Company sells discounted shoes to the fashion-oriented consumer. The following schedule relates to the company's
inventory for the month of March:
March 1
7
8
15
Beginning inventory
Purchase
Purchase
Sale
Sale
20
25
27 Sale
Purchase
3,300 units
1,100 units
1,650 units
3,850 units
770 units
550 units
1,320 units
Cost
$97,350
44,000
82,500
Metlock Company uses the perpetual inventory system.
16,390
Sales
$346,500
57,750
79,200
Calculate Metlock Company's gross margin ratio using: (Round answers to 2 decimal places, e.g. 61.05%.)
i. FIFO
ii. Weighted-average
FIFO
Weighted-average
Gross Margin Ratio
%6
%
Which cost formula produced the higher gross margin?
✓produces the higher gross margin.
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