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In: Accounting

Gleem Sales Corporation uses the perpetual inventory system. On January 1, 2019, Gleem had: 2,600 units...

Gleem Sales Corporation uses the perpetual inventory system. On January 1, 2019, Gleem had: 2,600 units of product B with a unit cost of $40 per unit. A summary of purchases and sales during 2019 follows :

Unit
Cost

Units
Purchased

Units
Sold

Mar. 8

$44

3,000

June 13

4,000

Sept.19

50

800

Nov.23

55

1,200

Dec.28

2,800

Required
a. Assume that Gleem uses the first-in, first-out method. Compute the cost of goods sold for 2019 and the ending inventory balance at December 31, 2019, for product B.

B. Assume that Gleem uses the last-in, first-out method. Compute the cost of goods sold for 2019 and the ending inventory balance at December 31, 2019, for product B.


C. Assume that Gleem uses the weighted-average cost method. Compute the cost of goods sold for 2019 and the ending inventory balance at December 31, 2019, for product B.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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