The following information is for the inventory of mini-kettles at Marigold Company Limited for the month of May: Date Transaction Units In Unit Cost Total Units Sold Unit Price Total May 1 Balance 100 $4.40 $440 6 Purchase 850 4.20 3,570 7 Sale 350 $7.40 $2,590 10 Sale 350 7.40 2,590 12 Purchase 410 4.80 1,968 15 Sale 250 7.60 1,900 18 Purchase 350 4.80 1,680 22 Sale 410 8.00 3,280 25 Purchase 550 4.40 2,420 30 Sale 250 7.60 1,900 Totals 2,260 $10,078 1,610 $12,260 (a1) Your answer has been saved. See score details after the due date. Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under FIFO. Ending inventory $Enter your answer in accordance to the question statement Attempts: 1 of 1 used (a2) Your answer has been saved. See score details after the due date. Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under weighted average. (Round weighted average unit cost to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.) Ending inventory $Enter your answer in accordance to the question statement Attempts: 1 of 1 used (b) Which method will yield the higher current ratio or gross profit? will yield the highest ending inventory gives a higher gross profit.
The following information is for the inventory of mini-kettles at Marigold Company Limited for the month of May: Date Transaction Units In Unit Cost Total Units Sold Unit Price Total May 1 Balance 100 $4.40 $440 6 Purchase 850 4.20 3,570 7 Sale 350 $7.40 $2,590 10 Sale 350 7.40 2,590 12 Purchase 410 4.80 1,968 15 Sale 250 7.60 1,900 18 Purchase 350 4.80 1,680 22 Sale 410 8.00 3,280 25 Purchase 550 4.40 2,420 30 Sale 250 7.60 1,900 Totals 2,260 $10,078 1,610 $12,260 (a1) Your answer has been saved. See score details after the due date. Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under FIFO. Ending inventory $Enter your answer in accordance to the question statement Attempts: 1 of 1 used (a2) Your answer has been saved. See score details after the due date. Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under weighted average. (Round weighted average unit cost to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.) Ending inventory $Enter your answer in accordance to the question statement Attempts: 1 of 1 used (b) Which method will yield the higher current ratio or gross profit? will yield the highest ending inventory gives a higher gross profit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information is for the inventory of mini-kettles at Marigold Company Limited for the month of May:
| Date | Transaction | Units In |
Unit Cost |
Total | Units Sold |
Unit Price |
Total | |||||||||||||
| May 1 | Balance | 100 | $4.40 | $440 | ||||||||||||||||
| 6 | Purchase | 850 | 4.20 | 3,570 | ||||||||||||||||
| 7 | Sale | 350 | $7.40 | $2,590 | ||||||||||||||||
| 10 | Sale | 350 | 7.40 | 2,590 | ||||||||||||||||
| 12 | Purchase | 410 | 4.80 | 1,968 | ||||||||||||||||
| 15 | Sale | 250 | 7.60 | 1,900 | ||||||||||||||||
| 18 | Purchase | 350 | 4.80 | 1,680 | ||||||||||||||||
| 22 | Sale | 410 | 8.00 | 3,280 | ||||||||||||||||
| 25 | Purchase | 550 | 4.40 | 2,420 | ||||||||||||||||
| 30 | Sale | 250 | 7.60 | 1,900 | ||||||||||||||||
| Totals | 2,260 | $10,078 | 1,610 | $12,260 |
(a1)
Your answer has been saved. See score details after the due date.
Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under FIFO.
| Ending inventory | $Enter your answer in accordance to the question statement |
Attempts: 1 of 1 used
(a2)
Your answer has been saved. See score details after the due date.
Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under weighted average. (Round weighted average unit cost to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.)
| Ending inventory | $Enter your answer in accordance to the question statement |
Attempts: 1 of 1 used
(b)
Which method will yield the higher current ratio or gross profit?
| will yield the highest ending inventory | |
| gives a higher gross profit. |
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