Cowboy Ice Cream Company (CIC) had the following purchases of ice cream bars for Year...
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Accounting
Cowboy Ice Cream Company (CIC) had the following purchases of ice cream bars for Year 1 of operations:
Jan. 20
Purchased
490
units
@
$
8
=
$
3,920
Apr. 21
Purchased
130
units
@
$
9
=
1,170
July 25
Purchased
240
units
@
$
11
=
2,640
Sept. 19
Purchased
80
units
@
$
13
=
1,040
During the year, CIC sold 780 ice cream bars for $18 each.
Required
Compute the amount of ending inventory CIC would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average.
Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.
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