Take2 Company reports the following purchases and sales data for its product Z for the month of March. Activities Beginning inventory Units purchased at cost Units sold at retail 200 units @ $6.00 120 units @ $12.00 300 units @ $7.00 210 units @ $15.00 100 units @ $8.00 Take2 Company uses a perpetual inventory system. If Helen, the marketing manager wants to earn a bonus based on a percent of gross profit, explain the method of inventory costing she will prefer. (FIFO, LIFO or Weighted Average Cost) Date Mar. 1 Mar. 10 Sales Mar. 20 Purchase Mar. 24 Sales Mar. 30 Purchase
Take2 Company reports the following purchases and sales data for its product Z for the month of March. Activities Beginning inventory Units purchased at cost Units sold at retail 200 units @ $6.00 120 units @ $12.00 300 units @ $7.00 210 units @ $15.00 100 units @ $8.00 Take2 Company uses a perpetual inventory system. If Helen, the marketing manager wants to earn a bonus based on a percent of gross profit, explain the method of inventory costing she will prefer. (FIFO, LIFO or Weighted Average Cost) Date Mar. 1 Mar. 10 Sales Mar. 20 Purchase Mar. 24 Sales Mar. 30 Purchase
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:Take2 Company reports the following purchases and sales data for its product Z for the month
of March.
Date
Mar. 1
Activities
Beginning inventory 200 units @ $6.00
Sales
Purchase
300 units @ $7.00
Mar. 24
Sales
Mar. 30 Purchase
100 units @ $8.00
Take2 Company uses a perpetual inventory system.
If Helen, the marketing manager wants to earn a bonus based on a percent of gross
profit, explain the method of inventory costing she will prefer. (FIFO, LIFO or
Weighted Average Cost)
Units purchased at cost Units sold at retail
120 units @ $12.00
210 units @ $15.00
Mar. 10
Mar. 20
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