Crane Company sells leather saddles and equipment for horse enthusiasts. Crane uses the perpetual inventory system. The following schedule relates to the company's inventory for the month of May: May 1 5 9 13 24 27 (a1) 30 Beginning inventory Sale Purchase Purchase Sale Sale Purcha Cost of goods sold $ Gross margin Ending inventory $ 120 units $ 80 units 40 units 160 units 160 units 40 units 60 units Cost $42,000 $15,400 $67,200 Calculate Crane Company's cost of goods sold, gross margin, and ending inventory using FIFO. $27,720 Sales $36,400 $78,400 $22,400
Crane Company sells leather saddles and equipment for horse enthusiasts. Crane uses the perpetual inventory system. The following schedule relates to the company's inventory for the month of May: May 1 5 9 13 24 27 (a1) 30 Beginning inventory Sale Purchase Purchase Sale Sale Purcha Cost of goods sold $ Gross margin Ending inventory $ 120 units $ 80 units 40 units 160 units 160 units 40 units 60 units Cost $42,000 $15,400 $67,200 Calculate Crane Company's cost of goods sold, gross margin, and ending inventory using FIFO. $27,720 Sales $36,400 $78,400 $22,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
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Subject :- Accounting
Transcribed Image Text:Crane Company sells leather saddles and equipment for horse enthusiasts. Crane uses the perpetual inventory system. The following
schedule relates to the company's inventory for the month of May:
May 1
5
9
13
24
27
(a1)
30
Beginning inventory
Sale
Purchase
Purchase
Sale
Sale
Purchase
Cost of goods sold $
Gross margin
Ending inventory
$
120 units
$
80 units
40 units
160 units
160 units
40 units
60 units
Cost
$42,000
$15,400
$67,200
Calculate Crane Company's cost of goods sold, gross margin, and ending inventory using FIFO.
$27,720
Sales
$36,400
$78,400
$22,400
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