The following information relates to Good Kitchen Ltd.’s inventory transactions during the month of March. Units...

The following information relates to Good Kitchen Ltd.’s inventory transactions during the month of March.

		Units	Cost/Unit	Amount
Mar. 1	Beginning inventory	6,500	$17.00	$110,500
7	Sale	4,000
12	Purchase	2,600	$19.00	$49,400
16	Purchase	800	$19.00	$15,200
18	Sale	3,000
27	Purchase	4,000	$24.00	$96,000
29	Sale	3,600

All of the units sold were priced at $69.00 per unit.

(a1)

Good Kitchen Ltd. uses the periodic inventory system. Calculate Good Kitchen’s cost of goods sold, gross margin, and ending inventory for the month of March using FIFO.

Cost of Goods Sold		$
Gross margin		$
Ending Inventory		$

b-Calculate Company’s cost of goods sold, gross margin, and ending inventory using weighted-average.

Cost of goods sold		$
Gross margin		$
Ending Inventory		$

Which cost formula produced the higher gross margin?

Expert Solution

ekkarill92 answered 2 years ago

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