AP7-8A (Calculation of ending inventory and cost of goods sold-perpetual system) The following information relates...
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AP7-8A (Calculation of ending inventory and cost of goods sold-perpetual system) The following information relates to Hogs Back Falls Ltd.s inventory transactions during the month of February Units 7,500 6,500 4,000 500 4,000 4,000 2,900 Cost/Unit S25.00 Amount Feb. 1 10 14 18 25 26 28 Beginning inventory Sale Purchase Purchase Sale Purchase Sale $187,500 S26.00 $104,000 $29.00 14,500 35.00 $140,000 All of the units sold were priced at $85.00 per unit. Required a. Hogs Back Falls Ltd. uses the perpetual inventory system. Calculate Hogs Back's cost of go sold, gross margin, and ending inventory for the month of February using: i. FIFO ii. weighted-average. Round per unit cost to two decimal places. b. Which of the cost formulas would produce the higher gross margin
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