Saddlery Company sells leather saddles and equipment for horse enthusiasts Saddlery uses the perpetual inventory system. The following schedule relates to the company's inventory for the month of May May 1 Beginning inventory 5 9 2268 13 24 30 (22) (b) Sale FIFO Purchase Purchase Sale Sale Purchase 120 units 80 units 40 units 160 units 160 units 40 units 60 units Weighted average Gross Margin Ratio Cost produc $48,000 Which cost formula produced the higher gross margin $17,600 $76,800 $31,600 4 gross margin Sales $41.600 $89,600 $25,600 2 decimal places, eg 6105%)
Saddlery Company sells leather saddles and equipment for horse enthusiasts Saddlery uses the perpetual inventory system. The following schedule relates to the company's inventory for the month of May May 1 Beginning inventory 5 9 2268 13 24 30 (22) (b) Sale FIFO Purchase Purchase Sale Sale Purchase 120 units 80 units 40 units 160 units 160 units 40 units 60 units Weighted average Gross Margin Ratio Cost produc $48,000 Which cost formula produced the higher gross margin $17,600 $76,800 $31,600 4 gross margin Sales $41.600 $89,600 $25,600 2 decimal places, eg 6105%)
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 4BE: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...
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![Saddlery Company sells leather saddles and equipment for horse enthusiasts. Saddlery uses the perpetual inventory system. The
following schedule relates to the company's inventory for the month of May
May 1
5
D
9
13
24
27
30
(21)
(a2)
(b)
Beginning inventory
FIFO
Sale
Purchase
Purchase
Sale
Sale
Purchase
Weighted average
eTextbook and Media
Savo
120 units
80 units
40 units
Cost
$48,000
$17,600
$76,800
160 units
160 units
40 units
60 units $31,680
Which cost formula produced the higher gross margin? (Round ons
Gross Margin Ratio
1%
Sales
produces the higher gross margin
$41.600
$89,600
$25,600
ecimal places, eg 61.05%)
Attempts 0 of 3 used Submit Anwer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbf1f1c18-d90b-47b3-b475-a6f9897afc01%2F24bde081-15e7-4f1b-84ad-2f81eb1d10fc%2F1c2dej_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Saddlery Company sells leather saddles and equipment for horse enthusiasts. Saddlery uses the perpetual inventory system. The
following schedule relates to the company's inventory for the month of May
May 1
5
D
9
13
24
27
30
(21)
(a2)
(b)
Beginning inventory
FIFO
Sale
Purchase
Purchase
Sale
Sale
Purchase
Weighted average
eTextbook and Media
Savo
120 units
80 units
40 units
Cost
$48,000
$17,600
$76,800
160 units
160 units
40 units
60 units $31,680
Which cost formula produced the higher gross margin? (Round ons
Gross Margin Ratio
1%
Sales
produces the higher gross margin
$41.600
$89,600
$25,600
ecimal places, eg 61.05%)
Attempts 0 of 3 used Submit Anwer
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