Assume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25 each. During the month, three new purchases were made. The first purchase consisted of 700 units costing S8.50 caot ofth units each, and the third purchase had 600 nventory shows 700 units. Compute the cost of goods sold and the ending inventory for the company us following methods. Also determine the gross margin if the total sales revenue is S43,000.
a. Specific identification: Of the units sold, 300 were from the beginning inventory, 600 first purchase, 700 from the second purchase, and 300 from the third purchase.
b. First-in, first-out (FIFO)
c. Weighted-average (round the unit price)