Chapter 6 P6-9B.docx - P6u20139B Cloutier Hardware which...

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P6–9B Cloutier Hardware, which uses a periodic inventory system, began 2020 with 9,000 units of inventory that cost a total of $90,000. At year end, the physical count indicated 10,000 units of inventory on hand. During 2020, Cloutier purchased merchandise on account as follows: Purchase 1 (15,000 units) $180,000 Purchase 2 (30,000 units) 420,000 Required How many units did Cloutier sell during the year? The sale price per unit was $31. Determine Cloutier’s sales revenue for the year. Compute cost of goods sold by both the FIFO and the weighted-average-cost method. Then determine gross margin for the year under each method.

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