Class Exercise 8.docx - Class Exercise 8 S6 u2013 14 Magic...

This preview shows page 1 - 3 out of 3 pages.

Class Exercise 8 S6 – 14: Magic Carpets began the year with inventory of $1,400,000. Inventory purchases for the year totaled $3,200,000. Sales revenue for the year was $7,000,000, and the gross margin was 45 percent. How much is Magic Carpets’ estimated cost of ending inventory? Use the gross margin method.
E6 – 11 Required Compute ending inventory and cost of goods sold using each of the following methods, assuming a periodic inventory system is used: 1. Specific-unit cost, assuming three $170 units and three $180 units are on hand on November 30, 2020.
2. Weighted-average cost.
3. First-in, first-out (FIFO)

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture