The Mazda Corporation, which was established in 2017, manufactures lubricants used by car manufacturers. The following data were abstracted from the company's records: Number of units produced 2017 - 13,000 2018 - 18,000 2019 - 25,000 Number of units sold 2017 - 10,000 2018 - 16,000 2019 - 24,000 Production cost per unit 2017 - $700 2018 - $820 2019 - $850 Sales for each year; 2017 - $12,000,000 2018 - $18,800,000 2019 - $29,400,000 REQUIRED: Determine the amount of gross profit for each of the years 2017, 2018, and 2019 using: • FIFO method • Weighted average method applying the periodic inventory system WITH EXPLANATION PLS!
The Mazda Corporation, which was established in 2017, manufactures lubricants used by car manufacturers. The following data were abstracted from the company's records: Number of units produced 2017 - 13,000 2018 - 18,000 2019 - 25,000 Number of units sold 2017 - 10,000 2018 - 16,000 2019 - 24,000 Production cost per unit 2017 - $700 2018 - $820 2019 - $850 Sales for each year; 2017 - $12,000,000 2018 - $18,800,000 2019 - $29,400,000 REQUIRED: Determine the amount of gross profit for each of the years 2017, 2018, and 2019 using: • FIFO method • Weighted average method applying the periodic inventory system WITH EXPLANATION PLS!
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Mazda Corporation, which was established in 2017, manufactures lubricants used by car manufacturers. The following data were abstracted from the company's records:
Number of units produced
2017 - 13,000
2018 - 18,000
2019 - 25,000
Number of units sold
2017 - 10,000
2018 - 16,000
2019 - 24,000
Production cost per unit
2017 - $700
2018 - $820
2019 - $850
Sales for each year;
2017 - $12,000,000
2018 - $18,800,000
2019 - $29,400,000
REQUIRED:
Determine the amount of gross profit for each of the years 2017, 2018, and 2019 using:
• FIFO method
• Weighted average method applying the periodic inventory system
WITH EXPLANATION PLS!
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