account inventry Dutch Truck Sales sells semitrailers. The current inventory includes the following five semitrailers (identical except for paint color) along withpurchase dates and costs:Semitrailer Purchase Date Cost1April 3, 2008$73,0002April 10, 2008 70,0003April 10, 2008 71,0004May 4, 200877,0005(лMay 12, 200878,500On May 20, 2008, a trucking firm purchased semitrailer 3 from Dutch for $86,000.1. Compute the gross margin on this sale assuming Dutch uses:(a) FIFO inventory method.(b) LIFO inventory method.(c) Specific identification method.2. Which inventory method do you think Dutch should use? Why?

Step 1: Given DataSemitrailer sold: Semitrailer 3Selling price: $86,000Inventory costs:Semitrailer…

Answered: Dutch Truck Sales sells semitrailers.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 15, 2018, Walmart sold 1,700 fishing reels to Costco. Immediately prior to this sale, Walmart perpetual inventory records for reels included the following cost layers: Prepare a separate journal entry to record the cost of goods sold relating to the January 15 sale of 1,700 reels, assuming that Walmart uses: LIFO
On January 15, 2018, Walmart sold 1,700 fishing reels to Costco. Immediately prior to this sale, Walmart perpetual inventory records for reels included the following cost layers: Prepare a separate journal entry to record the cost of goods sold relating to the January 15 sale of 1,700 reels, assuming that Walmart uses: FIFO
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