Study the inventory record for March and answer the questions that follow. 1. Assuming that the product sells for $150 and that 85% of sales are on account, determine the gross profit from sales for March. $ 2. Making the same assumptions as in (1), determine the ending inventory cost for March. $ 3. Which inventory method is being used?
Study the inventory record for March and answer the questions that follow. 1. Assuming that the product sells for $150 and that 85% of sales are on account, determine the gross profit from sales for March. $ 2. Making the same assumptions as in (1), determine the ending inventory cost for March. $ 3. Which inventory method is being used?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Widget Tek Inc.’s original accountant accepted a position with another firm and left in early March. You have been asked to review the subsidiary inventory ledger record for Widget Tek Inc.’s main product for March.
Inventory | |||||||||
Date | Quantity | Unit Cost | Total Cost | ||||||
Mar. 1 | 850 | $98 | $83,300 | ||||||
1,275 | $95 | $121,125 | |||||||
Mar. 8 | 650 | $98 | $63,700 | ||||||
Mar. 11 | 325 | $98 | $31,850 | ||||||
Mar. 14 | 325 | $98 | $31,850 | ||||||
780 | $103 | $80,340 | |||||||
Mar. 22 | 260 | $98 | $25,480 | ||||||
Mar. 25 | 260 | $98 | $25,480 | ||||||
1,700 | $99 | $168,300 |
Study the inventory record for March and answer the questions that follow.
1. Assuming that the product sells for $150 and that 85% of sales are on account, determine the gross profit from sales for March. $
2. Making the same assumptions as in (1), determine the ending inventory cost for March. $
3. Which inventory method is being used?
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