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. InventoryDateQuantityUnit CostTotal CostMar. 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?

Name: Widget Tek Inc.’s original accountant accepted a position with another
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Description: 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. InventoryDateQuantityUnit CostTota

Cost of Sales = 83300 + 121125 + 63700 + 31850 + 31850 + 80340 + 25480 + 25480 + 168300 = $631,425…

Answered: Study the inventory record for March…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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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