90.2K

Verified Solution

Link Copied!

began with tents that cost $ each. During the month, made the following purchases at cost: LOADING... (Click the icon to view the purchases.) sold tents ( tents on 22 and tents on 30), and at 31 the ending inventory consists of tents. The sale price of each tent was . Requirements LOADING... Requirement 1. Determine the cost of goods sold and ending inventory amounts for under (a) weighted-average cost and (b) FIFO cost. Round weighted-average cost per unit to four decimal places, and round all other amounts to the nearest dollar. (Assume a perpetual inventory control system is used.) Weighted- Average Cost Ending inventory Cost of goods sold FIFO Requirement 2. Explain why cost of goods sold is highest under weighted-average cost. Be specific. (Assume a perpetual inventory control system is used.) Weighted-average cost results in the highest cost of goods sold because (a) the cost of tents is falling rising static and (b) weighted-average cost includes the cost of the latest inventory purchases. oldest units purchased. weighted-average unit cost. When costs are rising, these latest inventory costs are the highest and that makes cost of goods sold the highest lowest under weighted-average cost. Requirement 3. Prepare 's income statement for . Report gross profit. Operating expenses totalled . uses the weighted-average costing for inventory. The income tax rate is %. (Round income tax expense to the nearest whole dollar.) Ground-Navy Surplus Ltd. Income Statement For the Month Ended October 31, 2020 View instructor tip Time Remaining: 00:54:58 PurchasesDialog content starts October 4 103 tents @ $21 = $2,163 19 161 tents @ 23 = 3,703 25 44 tents @ 24 = 1,056

Answer & Explanation Solved by verified expert

See Answer