Compute gross margin assuming the lifo cost method

Assignment Help Accounting Basics

Reference no: EM131983528

Problem

Stewart Company sells a single product for $2.00 per unit and uses a periodic inventory system. The following data are available this year.

Date Transaction # of units Unit Cost

1/1/99 Beginning inventory 500 $1.00

2/5/99 Purchases 350 $1.10

4/12/99 Sale 550

7/17/99 Sale 200

9/23/99 Purchase 400

11/5/99 Sale 300 $1.30

(a) Compute cost of goods sold using weighted average cost method.

(b) Compute the dollar amount of ending inventory assuming the FIFO cost method.

Reference no: EM131983528

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