Reference no: EM132566437
Question - Ontario Skateboard Company has the following inventory and purchases during the fiscal year ended December 31, 2020.
Beginning inventory 295 units @ $83/unit
March 10 purchased 210 units @ $87/unit
March 20 sold 375 units @ $163/unit
May 13 purchased 277 units @ $81/unit
August 5 purchased 260 units @ $67/unit
September 10 sold 515 units @ $163/unit
Ontario Skateboard Company employs a perpetual inventory system. Required 1. Calculate the dollar value of ending inventory and cost of goods sold using:
1. a. FIFO
b. Moving weighted average. Round all unit costs to two decimal places.
2. Using your calculations from Part 1, complete the following schedule:
FIFO Moving Weighted Average
Sales
Cost of goods sold
Gross profit
Analysis Component: How would the gross profits calculated in Part 2 above change if Ontario Skateboard Company had been experiencing increasing prices in the acquisition of additional inventory?