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

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Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section20.3: Estimating Inventory

Problem 1WT

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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. 1 850 $98 $ 83,300 1,275 $95 $121, 125 Mar. 8 650 $98 $63, 700 Mar. 11 325 $98 $31, 850 Mar. 14 325 $ 98 $31,850 780 $103 $80, 340 Mar. 22 260 $98 $25, 480 Mar. 25 260 $98 $25, 480 1,900 $102 $193,800 Study the inventory record for March and answer the questions that follow. 1. Assuming that the product sells for $150 and that 90% of sales are on account, determine the gross profit from sales for March. $fill in the blank 2. Making the same assumptions as in (1), determine the ending inventory cost for March. $fill in the blank 3. Which inventory method is being used?
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