Question

Problem 6-7A Gross profit comparisons and cost flow assumptions—perpetual LO2, 3 Ontario Skateboard Company has the following inventory and purchases during the fiscal year ended December 31, 2020.

Beginning Inventory				310	units	@	$	87/unit
March	10	purchased		229	units	@	$	90/unit
March	20	sold		401	units	@	$	173/unit
May	13	purchased		299	units	@	$	83/unit
August	5	purchased		286	units	@	$	76/unit
September	10	sold		520	units	@	$	173/unit

Ontario Skateboard Company employs a perpetual inventory system.

Required:
1. Calculate the dollar value of ending inventory and cost of goods sold using: (Do not round intermediate calculations. Round the final answers to 2 decimal places. Round weighted average all unit costs to two decimal places.)

a. FIFO Ending Inventory Cost of Goods sold

b. Moving weighted average Ending Inventory Cost of goods sold

2. Using your calculations from Part 1, complete the following schedule: (Do not round intermediate calculations. Round the final answers to 2 decimal places. Round weighted average all unit costs to two decimal places.)

Sales FIFO Moving weighted average

Cost of Goods sold FIFO Moving Weighted Average

Gross Profit FIFO Moving Weighted Average

Answer 1

* ontario skateboara Rea I FIFO - 6 moving weighted Avg Ending Inventoul cost of good soid - $ 15428 $ 78705 16491.93 $ 776 41:07 Explanation I FIFO totoy cost cost of Good sola cost Torch unit PU cost Purchase No.of cost pate units PU Beginu mor 10 229 $90 mar 20 marzo Ending Inventory cost TOTCH units Ro cost 310 $87 26940 310 68726910 | 229 $90 20610 20610 | 310 $ 87 126970 1s90 8190 138 $90 12420 may 13 299 $83 24817 138 $90 $12420 Aug 286 $76 21736 299 583 5 24817 1138 590 12420 299 $83 $24817 286 $76 2136 $90 $12920 $83 1824817 $76 6308 203 $76 S15428 $ 78705 S15428 Sepso 138 299 83 End, bal

2) Weighted Avg purchase cost of Good sold Ending Inventory cost Torce cost TOTG cost TOIG bate units PU cost Unit pu cost units PU cost Beg.IV. 310 $87 26970 mo.10 229 $90 20610 229 $90 20610 Aug 539 $88.27 47580 marzo 401 $88.27 35396.27 138 $88.27 12 183.73 may 3 299 $83 24817 138 588 27:12183.73 1299 $83 24817 Avg cost 437 $84.67 37000.13 Aug 5 286 $76 21736 437 684.67 37000.72 286 $76 21736 Avg cost 723681.24 58736.73 Sepio 1520 $81.24 42,244.80 203 $81.24 16491.93 S 77641 516491-93 0+ I part 2 FIFO sales $ 159333 cost of Good sola (78705) Gross profitar $ 80628 moving Aug 159333 (77641-071 81691-93 soles (401X $173) + (520X $ 69373 + 89 960 = $ 193 $ 159333 =