Problem 6-6A Alternative cost flows-perpetual LO2, 23 Case Defence sells smartphone cases and uses the perpetual inventory system. The following is information on the purchases and sales of "Defender Box" cases. On October 1, Case Defence had 28 units with a unit cost of $22. Date Oct. 3 Oct. 6 Oct. 12 Oct. 19 Oct. 23 Oct. 30 Oct. 31 Units Unit Cost Purchases 18 28 38 23 Required 1. Calculate the dollar value of cost of goods sold and ending inventory for the month of October using the following methods. a. FIFO b. Moving weighted average. Round all unit costs to two decimal places and round all other numbers to the nearest dollar. 2. Using the calculations in Part 1, complete the following table: Sales... Cost of goods sold. Gross profit 23 25 27 28 3. Does using FIFO or moving weighted average produce a. A higher gross profit? b. A higher ending inventory balance? 4. Calculate the gross profit percentage for FIFO and moving weighted average for the month of October. Round to the nearest percentage. Units Unit Price 23 28 Sales 33 $58 $58 $58 FIFO Moving Weighted Average
Problem 6-6A Alternative cost flows-perpetual LO2, 23 Case Defence sells smartphone cases and uses the perpetual inventory system. The following is information on the purchases and sales of "Defender Box" cases. On October 1, Case Defence had 28 units with a unit cost of $22. Date Oct. 3 Oct. 6 Oct. 12 Oct. 19 Oct. 23 Oct. 30 Oct. 31 Units Unit Cost Purchases 18 28 38 23 Required 1. Calculate the dollar value of cost of goods sold and ending inventory for the month of October using the following methods. a. FIFO b. Moving weighted average. Round all unit costs to two decimal places and round all other numbers to the nearest dollar. 2. Using the calculations in Part 1, complete the following table: Sales... Cost of goods sold. Gross profit 23 25 27 28 3. Does using FIFO or moving weighted average produce a. A higher gross profit? b. A higher ending inventory balance? 4. Calculate the gross profit percentage for FIFO and moving weighted average for the month of October. Round to the nearest percentage. Units Unit Price 23 28 Sales 33 $58 $58 $58 FIFO Moving Weighted Average
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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