Homework Help is Here – Start Your Trial Now!
Business
Accounting
Widget 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 Tek Inc.'s main product for March. Inventory Date Quantity Unit Cost Total Cost Mar. 1 Mar. 8 Mar. 11. Mar. 14. Mar. 22 Mar. 25 850 1,275 650 325 325 780 260 260 2,000 $98 $95 $98 $98 $98 $103 $83,300 $121,125 $63,700 $31,850 $31,850 $80,340 $98 $25,480 $98 $25,480 $100 $200,000 Study the inventory record for March and answer the questions that follow. Assuming that the product sells for $165 and that 90% 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? LIFO - V 297,000 X 297,000 X

Widget 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 Tek Inc.'s main product for March. Inventory Date Quantity Unit Cost Total Cost Mar. 1 Mar. 8 Mar. 11. Mar. 14. Mar. 22 Mar. 25 850 1,275 650 325 325 780 260 260 2,000 $98 $95 $98 $98 $98 $103 $83,300 $121,125 $63,700 $31,850 $31,850 $80,340 $98 $25,480 $98 $25,480 $100 $200,000 Study the inventory record for March and answer the questions that follow. Assuming that the product sells for $165 and that 90% 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? LIFO - V 297,000 X 297,000 X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question

Note:-

  • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
  • Answer completely.
  • You will get up vote for sure.
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 Mar. 8 Mar. 11 Mar. 14 Mar. 22 Mar. 25 850 1,275 650 325 325 780 260 260 2,000 $98 $95 $98 $98 $98 $103 $98 $98 $100 $83,300 $121,125 $63,700 $31,850 $31,850 $80,340 $25,480 $25,480 $200,000 Study the inventory record for March and answer the questions that follow. 1. Assuming that the product sells for $165 and that 90% 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? LIFO ✓ 297,000 X 297,000 X
Transcribed Image Text: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 Mar. 8 Mar. 11 Mar. 14 Mar. 22 Mar. 25 850 1,275 650 325 325 780 260 260 2,000 $98 $95 $98 $98 $98 $103 $98 $98 $100 $83,300 $121,125 $63,700 $31,850 $31,850 $80,340 $25,480 $25,480 $200,000 Study the inventory record for March and answer the questions that follow. 1. Assuming that the product sells for $165 and that 90% 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? LIFO ✓ 297,000 X 297,000 X
Expert Solution
steps

Step by step

Solved in 6 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS