Problem 6-8A Fast Framing Co. began March with 73 units of inventory that cost $50...
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Problem 6-8A Fast Framing Co. began March with 73 units of inventory that cost $50 each. During the month, Fast made the following purchases: Computing inventory by two methods-periodic system Mar 4 12 19 25 113 units at $48 81 units at $49 167 units at $52 34 units at $56 2. Gross margin, weighted average, $18,942 The company uses a periodic inventory system, and the physical count at March 31 shows 51 units of inventory on hand. Required 1. Determine the ending inventory and cost of goods sold amounts for the March financial statements under (a) weighted-average cost and (b) FIFO cost. Round average cost per unit to the nearest cent and all other amounts to the nearest dollar. 2. Sales revenue for March totalled $40,000. Compute Fast's gross margin for March under each method. 3. Which method will result in lower income taxes for Fast? Why? 4. Which method will result in higher net income for Fast? Why
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