Reference no: EM132495307

1. The Atlas Company had the following beginning inventory, purchases, and sales of inventory during the first quarter of 2019:

Units                       Cost per unit               Total

1-Jan Beginning inventory   1,200  30   36,000

2-Jan  Purchases                 500    32  16,000

25-Jan  Sale                         700

5-Feb Purchases                  600   34     20,400

18-Feb        Sale                 800

15-March  Purchases           600     32         19,200

Required:

Question a. Compute the amount of cost of goods sold, ending inventory assuming the following cost flow assumptions: A) FIFO B) LIFO C) Weighted Average

Question b. Compute the gross margin as per the above methods.