Suppose a Plimpton store in Ottawa, Ontario, ended April 2020 with 900,000 units of merchandise...
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Suppose a Plimpton store in Ottawa, Ontario, ended April 2020 with 900,000 units of merchandise that cost an average of $9 each. Suppose the store then sold 500,000 units for $4.9 million during May. Further, assume the store made two large purchases during May as follows: May 9 27 80,000 units @ $ 8 300,000 units @ $ 7 = $ 640,000 $ 2,100,000 Required 1. At May 31, the store manager needs to know the store's gross profit under both FIFO and weighted-average cost. Supply this information. Plimpton uses the periodic inventory system. 2. What caused the FIFO and weighted average cost gross profit figures to differ? Requirement 1. At May 31, the store manager needs to know the store's gross profit under both FIFO and weighted-average cost. Supply this information. Plimpton uses the periodic inventory system. (Round all calculations to one decimal place.) Millions Weighted- Average-Cost FIFO Gross profit Gross profit
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