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Tool Depot sells the latest selection of power tools and uses a perpetual inventory system....

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Accounting

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Tool Depot sells the latest selection of power tools and uses a perpetual inventory system. The following is in formation on the purchases and sales of the power drills, "M1500." On November 1, Tool Depot had 150 units Problem 6-6B Alternative cost flows-perpetual LO2, 3 with a unit cost of $49. Sales Purchases Unit Price Units Date Units Unit Cost 100 $100 Nov. 4 200 47 Nov. 6 350 45 Nov. 16 $100 275 Nov. 20 Nov. 24 150 40 $110 250 Nov. 28 100 $110 Nov. 30 Required 1. Calculate the cost of goods sold and ending inventory using the following methods. a. FIFO b. Moving weighted average. Round all unit costs to two decimal places and round all other numbers to the nearest dollar. 2. Using your calculations from Part 1, complete the following schedule: Moving Weighted Average FIFO Sales.. Cost of goods sold Gross profit 3. Does using FIFO or moving weighted average produce a. A higher gross profit? b. A higher ending inventory balance? 4. Calculate the gross profit percentage for both methods for the month of November. Round to the nearest percentage. An asterisk (*) identifies assignment material based on Appendix 6A

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