Question 3Wario Widgets uses a perpetual inventory system and it uses the FIFO (First-In, First-Out) costing method. It entered into the following purchases and sales transactions for March.DateActivitiesUnits Acquired at CostUnits Sold at Retail PriceMar 1Opening inventory400 units at RM100/unit Mar 5Purchases300 units at RM150/unit Mar 10Sales 600 units at RM500/unitMar 15Purchases400 units at RM180/unit Mar 20Sales 400 units at RM500/unitMar 25Purchases200 units at RM180/unit 100 units at RM170/unit Required:Apply the FIFO costing method to compute the gross profit, the cost of goods purchased, cost of goods sold, and inventory balance for each transaction.

Name: Question 3Wario Widgets uses a perpetual inventory system and it uses
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Description: Question 3Wario Widgets uses a perpetual inventory system and it uses the FIFO (First-In, First-Out) costing method. It entered into the following purchases and sales transactions for March.DateActivitiesUnits Acquired at CostUnits Sold at Retail Pri

FIFO: In First-in-First-Out method, items purchased initially are sold first. So, the value of the…

Answered: Question 3 Wario Widgets uses a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question 3

Wario Widgets uses a perpetual inventory system and it uses the FIFO (First-In, First-Out) costing method. It entered into the following purchases and sales transactions for March.

Date	Activities	Units Acquired at Cost	Units Sold at Retail Price
Mar 1	Opening inventory	400 units at RM100/unit
Mar 5	Purchases	300 units at RM150/unit
Mar 10	Sales		600 units at RM500/unit
Mar 15	Purchases	400 units at RM180/unit
Mar 20	Sales		400 units at RM500/unit
Mar 25	Purchases	200 units at RM180/unit 100 units at RM170/unit

Required:

Apply the FIFO costing method to compute the gross profit, the cost of goods purchased, cost of goods sold, and inventory balance for each transaction.

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