Applying the Cost of Goods Sold Model
Wilson Company sells a single product. At the beginning of the year, Wilson had 120 units in stock at a cost of $9 each. During the year, Wilson purchased 850 more units at a cost of $9 each and sold 210 units at $13 each, 250 units at $15 each, and 360 units at $14 each.
Required:
1. Using the cost of goods sold model, what is the amount of ending inventory and cost of goods sold?
Cost of goods sold $
Ending inventory $
2. What is Wilson's gross margin for the year?