Windward Corporation uses the Specific Identification inventory method. The Company has the following inventory items and costs...

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Accounting

Windward Corporation uses the Specific Identificationinventory method.

The Company has the following inventory items and costs for thePeriod.

Beginning inventory of 3 units purchased for $4,100 each.
January 20, purchase 2 units for $4,200 each.
February 3, purchase 3 units for $4,500 each.
February 14, sold 5 units for $5,800 each (3 units from thebeginning Inventory and 2 units from the February 3rdpurchase)
1. What is the total cost of the units in inventory at March 31?$
2. What is the total Sales for the quarter ending March 31? $
3. What is the Cost of Goods Sold for the quarter ending March 31?$
4.What is Gross Margin for the quarter ending March 31? $
2. CDM Corporation erroneously included $24,600 of goodson consignment from another company in endinginventory.

What effect does this have on the following items? (determine theamount and use a positive number to designate an overstated amountand a negative number to designate an understated amount).
a. Ending Inventory $ ???
b. Cost of Goods Sold $ ????
c. Gross Margin $ ???
d. Net Income$ ???

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4.1 Ratings (773 Votes)

1 Opening Inventory Value 34100 12300 Purchase as on Jan 20 and Feb 3 2420034500 21900 Total Value of Inventory as on 13 Feb 1230021900 34200 Inventory sold on 14 Feb COsting to 3410024500 21300 See Answer

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