BExplain the Results of the Weighted-Average Inventory Costing Method Compared

question 78

Essay

$$\begin{array}{l}\begin{array} { l } \text { }&\text { }\\&\text { FIFO }\\\text { Sales revenue }(4,000 \text { units) } & \$ 80,000 \\\text { Cost of goods sold: } & \\\text { Beginning inventory }(1,000 &\\\text { units } @\$ 10 \text { per unit) } & 10,000 \\\text { Purchases ( } 5,000 \text { units } @ \$ 12 & \\\text { per unit) } & 60,000\\\text { Goods available for sale } & \\\text { Ending inventory ( } 2,000 \text { units) } & \\\quad \text { Cost of goods sold } & \\\text { Gross margin } & \\\text { Expenses } &20,000 \\\text { Net income (pretax) }\end{array}\begin{array} { l } \text { }&\text {Weighted }\\\text { LIFO }&\text {Average }\\\$ 80,000 & \$ 80,000 \\&&\\\\10,000 & 10,000 \\\\60,000 & 60,000 \\\\\\\\\\20,000 & 20,000\\\\\end{array}\end{array}$$
B.Explain the results of the weighted-average inventory costing method compared to the FIFO and LIFO costing methods.

---

Definitions:

Private Online Network

A secured online environment where access is restricted to specific users, often used for private communication and data exchange.

Centralized Data Hub

A repository or system designed to gather, store, and manage data from various sources in a centralized location for easier access and analysis.

Social Media

Online platforms and technologies that facilitate the creation, sharing, and exchange of information, ideas, and content among users.

Corporate Barriers

Obstacles within an organization that impede communication, collaboration, or advancement towards goals.