Apply perpetual FIFO and weighted average. Answer question about financial statement effects.
(LO 2, 3) AP
Bennett Basketball sells a variety of basketballs and accessories. Information follows for Bennett Basketball's purchases and sales during February and March for Up-Snap, one of its top brands of basketballs:
| Feb. 7 |
|
|
18 |
$32 |
| 23 |
50 |
$20 |
|
|
| 26 |
|
|
50 |
30 |
| Mar. 10 |
24 |
19 |
|
|
| 23 |
|
|
32 |
29 |
Bennett uses a perpetual inventory system. On February 1, Bennett had 36 units on hand at a cost of $21 each. All purchases and sales during February and March were on account.
Instructions
(a) Determine the cost of goods sold and ending inventory under a perpetual inventory system using (1) FIFO and (2) weighted average. (Round the weighted average cost per unit to two decimal places.)
(b) Calculate gross profit using (1) FIFO and (2) weighted average.