The Following Data Is Available for One of the Products

question 49

Essay

The following data is available for one of the products sold by Wild Optics Company,which uses the periodic inventory system:
At the end of December,Wild Optics had 25 units on hand.The 75 units sold created revenue of $13 each.Determine the amounts for the December 31 ending inventory,the cost of goods sold for December,and the gross margin for December for each of the inventory costing methods listed below.
$$\begin{array} { r l r } \text { Dec. } 1 & \text { On hand, } 10 \text { units at } \$ 8.00 \text { each } & \$ 80 \\5 & \text { Purchased 30 units at } \$ 7.80 \text { each } & 234 \\18 & \text { Purchased } 40 \text { units at } \$ 8.15 \text { each } & 326 \\24 & \text { Purchased 20 units at } \$ 8.25 \text { each } & 165 \\& \text { Available for sale during December-100 units } & \$ 805\end{array}$$ ?
$$\begin{array} {| l | l | l | l| } \hline& \text { Ending Inventory } & \text { Cost of Goods Sold } & \text { Gross Profit } \\\hline \text { a. Weighted average } & & & \\\hline \text { b. FIFO } & & & \\\hline \text { c. LIFO } & & & \\\hline\end{array}$$

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Definitions:

Short-Run Costs

Costs that vary with the level of output in the short term, including both variable and fixed costs.

Dairy Farmers

Producers of milk and milk products, typically operating on farms that raise cows, goats, or other lactating livestock for dairy production.

Status

An individual’s importance and prestige.

Stature

The perceived status, reputation, or authority a person or entity has, often influenced by achievements or character.