Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and (c) gross margin for A75 Company, considering the following transactions. Numberof UnitsUnitCostBeginning Inventory115 $44 Purchased Mar. 2150 46 Sold Mar. 31 for $75 per unit83 (a) Sales Revenue$fill in the blank 1(b) Cost of Goods Soldfill in the blank 2(c) Gross Margin$fill in the blank 3 Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold,and (c) gross margin for A75 Company, considering the following transactions.Number Unitof Units CostBeginning Inventory115$44Purchased Mar. 215046Sold Mar. 31 for $75 per unit83(a) Sales Revenue(b) Cost of Goods Sold(c) Gross Margin

First in first out method considers the assumption that goods purchased first are sold first by the business.The calculation of sales, cost of goods sold and gross margin are as follows:

Answered: Use the first-in, first-out (FIFO) cost…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and (c) gross margin for A75 Company, considering the following transactions.

	Number of Units	Unit Cost
Beginning Inventory	115	$44
Purchased Mar. 2	150	46
Sold Mar. 31 for $75 per unit	83

(a) Sales Revenue	$fill in the blank 1
(b) Cost of Goods Sold	fill in the blank 2
(c) Gross Margin	$fill in the blank 3

Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold,
and (c) gross margin for A75 Company, considering the following transactions.
Number Unit
of Units Cost
Beginning Inventory
115
$44
Purchased Mar. 2
150
46
Sold Mar. 31 for $75 per unit
83
(a) Sales Revenue
(b) Cost of Goods Sold
(c) Gross Margin

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