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Problem 6-4B Gross profit comparisons and cost flow assumptionsperpetual LO2, 3

CHECK FIGURES: 1. Ending inventory; a. $875; b. $960

The Manson Company has the following sales, inventory, and purchases during the fiscal year ended December 31, 2020.

Beginning inventory.......................................	180 units	@	$30/unit
Feb. 20 sold...................................................	145 units	@	$40/unit
Apr. 30 purchased..........................................	315 units	@	$29/unit
Oct. 5 purchased.............................................	225 units	@	$25/unit
Oct. 10 sold.....................................................	540 units	@	$40/unit

Manson Company uses a perpetual inventory system.

Required

1. Calculate the dollar value of ending inventory and cost of goods sold using:

   1. FIFO

   2. Moving weighted average method. Round all unit costs to two decimal places.

2. Using your calculations from Part 1, complete the following schedule:

	FIFO	MovingWeightedAverage
Sales............................................................................
Cost of goods sold......................................................
Gross profit..................................................................

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Analysis Component:

How would the gross profits calculated in Part 2 above change if Manson Company had been experiencing increasing prices in the purchase of additional inventory?

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