Inventory Date Quantity Unit Cost Total Cost Mar. 1 850 $98 $83,300 1,275 $95 $121,125 Mar. 8 650 $98 $63,700 Mar. 11 325 $98 $31,850 Mar. 14 325 $98 $31,850 780 $103 $80,340 Mar. 22 260 $98 $25,480 Mar. 25 260 $98 $25,480 1,800 $100 $180,000 Study the inventory record for March and answer the questions that follow. 1. Assuming that the product sells for $155 and that 85% of sales are on account, determine the gross profit from sales for March. 2. Making the same assumptions as in (1), determine the ending inventory cost for March. $ 3. Which inventory method is being used? LIFO

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Inventory
Date Quantity Unit Cost Total Cost
Mar. 1
850
$98
$83,300
1,275
$95
$121,125
Mar. 8
650
$98
$63,700
Mar. 11
325
$98
$31,850
Mar. 14
325
$98
$31,850
780
$103
$80,340
Mar. 22
260
$98
$25,480
Mar. 25
260
$98
$25,480
1,800
$100
$180,000
Study the inventory record for March and answer the questions that follow.
1. Assuming that the product sells for $155 and that 85% of sales are on account, determine the gross profit from sales for March.
2. Making the same assumptions as in (1), determine the ending inventory cost for March. $
3. Which inventory method is being used? LIFO
Transcribed Image Text:Inventory Date Quantity Unit Cost Total Cost Mar. 1 850 $98 $83,300 1,275 $95 $121,125 Mar. 8 650 $98 $63,700 Mar. 11 325 $98 $31,850 Mar. 14 325 $98 $31,850 780 $103 $80,340 Mar. 22 260 $98 $25,480 Mar. 25 260 $98 $25,480 1,800 $100 $180,000 Study the inventory record for March and answer the questions that follow. 1. Assuming that the product sells for $155 and that 85% of sales are on account, determine the gross profit from sales for March. 2. Making the same assumptions as in (1), determine the ending inventory cost for March. $ 3. Which inventory method is being used? LIFO
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