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A company that uses a perpetual inventory system made the following cash purchases and sales. There was no beginning inventory.
January 1: Purchased 30 units at SAR11 per unit February 5: Purchased 30 units at SAR 13 per unit March 16: Sold 50 Units for SAR 15 per unit
Problem A. Prepare general journal entries to record the March 16 sale using the
1. FIFO inventory valuation method. 2. LIFO inventory valuation method. 3. Weighted average valuation method.
Problem B. What is the cost of goods sold and the gross margin for each method?
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