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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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PLEASE ANSWER ASAP AND I WILL GIVE THUMBS UP PLEASEE

Transcribed Image Text:1) Some of the information found on a detailed inventory card for 3T company for December is as follows:
Issued
# units
Date
Dec 1
2
7
10
13
18
20
23
27
28
31
(open)
Instructions
Received
# units
1,150
1,050
600
1,000
1,300
1,500
$/unit
$2.90
3.00
3.20
3.30
3.40
3.60
700
500
300
1,100
800
1,300
Note - received = "purchased" and issued means "sold"
a. From the above data, using the 9 column schedule, calculate the COGS and ending inventory based on each of the following cost formulas:
(Assume that perpetual inventory records are kept. Calculate unit costs to the nearest cent and ending inventory to the nearest dollar)
1. Weighted average cost
2.. First-in, first-out (FIFO)
b. Based on your results in part (a), and assuming that the average selling price per unit during December was $8.00, prepare partial income statements up to the "gross profit on sales" line.
Calculate the gross profit percentage under each inventory cost formula. Round your answers to one decimal place. Which GP is higher?
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