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The following information relates to Cranes Kitchen Ltd.s inventory transactions during the month of March.

March 1) Beginning inventory

Units: 10,200

Cost/Unit: $18

Amount: $183,600

March 7) Sale

Units: 6,800

Cost/Unit: blank

Amount: blank

March 12) Purchase

Units: 4,250

Cost/Unit: $20

Amount: $85,000

March 16) Purchase

Units: 1,360

Cost/Unit: $20

Amount: $27,200

March 18) Sale

Units: 4,250

Cost/Unit: blank

Amount: blank

March 27) Purchase

Units: 6,800

Cost/Unit: $23

Amount: $156,400

March 29) Sale

Units: 5,950

Cost/Unit: blank

Amount: blank

All of the goods were priced at $65 per unit.

Question 1:

Sheridan Kitchen Ltd. Uses the periodic inventory system.

Calculate Sheridan Kitchens cost of goods sold, gross margin, and ending inventory for the month of March using FIFO.

a) Costs of goods sold:

b) Gross margin:

c) Ending Inventory:

Question 2:

Sheridan Kitchen Ltd. Uses the periodic inventory system.

Calculate Sheridan Kitchens cost of goods sold, gross margin, and ending inventory for the month of March using weighted average. (Round calculations for cost per unit to 2 decimal places, e.g., 10.52 and final answers to 0 decimal places, e.g., 61,052.)

a)Costs of goods sold:

b) Gross margin:

c) Ending Inventory:

Question 3:

Which of the cost formulas would produce the higher gross margin?

Answer & Explanation Solved by verified expert

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