CT) {43 Required 1. Miake summary journal entries to record the company's transactions for the year ended December 31, 2017. The company uses a...

Problem 6-9A

Required

1. How many units did Winslow Products sell during the year? The sale price per unit was

$38. Determine Winslow's sales revenue for the year.

2. Compute cost of goods sold by the weighted-average method. Round average cost per

unit to the nearest cent and all other amounts to the nearest dollar. Then determine gross

margin for the year.

3. Compute cost of goods sold by the FIFO method. Then determine gross margin for the

year.

4. Compare the gross margins you calculated for each inventory method in Requirements

2 and 3. What conclusions can you draw when the purchase prices for inventory are

falling?

CT) {43Required1. Miake summary journal entries to record the company's transactions for the year ended December 31, 2017. The company uses a perpetual inventory system. . Determine the FIFO cost of the company’s ending inventory at December 31, 2017. Usea T—account. . Calculate Prairie Hardware’s gross margin for the year ended December 31, 2017. Problem 6—8A Fast Framing Co. began March with 73 units of inventory that cost $50 each. During the Computing inventory bytwomonth, Fast made the following purd'rases: me‘lliDdS—DEI'iOdiC $151601 6) Mar. 4 113 units at $48 2. @055 margin, weighted12 31 units at $49 average. $i8,94219 167 units at $5225 34 units at $56 The company uses a periodic inventory system, and the physical count at March 31 shows51 units of inventory on hand. Required 1. Determine the ending inventory and cost of goods sold amounE for the March financialstatements under (a) weightediaverage cost and (b) FIFO cost. Round average cost perunit to the nearest cent and all other amounts to the nearest dollar. . Sales revenue for March totalled $40M. Compute Fast’s gross margin for hiarch undereach method. . Which method will result in lower income taxes for Fast? Why?. W'l‘iicl‘i method will result in higher net income for Fast? Why? Problem 6—9A Winslow Products, which uses a periodic inventory system, began 2017 with 6,000 units of Using the periodi( inventoryinventory that cost a total of $9U,lIlll. During 2017, Winslow Products purchased merchana SlHQW—Iwalghmd'averagi' anddise on account as follows: FIFO costing ® 3. Gross margin, FIFO. 5378.000Purchase 1 (10,000 units at $14 per unit) $140,000 Purchase 2 (20,003 units at $12 per unit) 240,030 At year end, the physical count indicated 20,000 units of inventory on hand. Required 1. How many units did Winslow Products sell during the year? The sale price per unit was$33. Determine Winslow's sales revenue for the year. . Compute cost of goods sold by the weighted-average method. Round average cost perunit to the nearest cent and all other amounts to the nearest dollar. Then determine grossmargin for the year. . Compute cost of goods sold by the FIFO method. Then determine gross margin for theyear. . Compare the gross margins you calculated for each inventory method in Requirements 2 and 3. What conclusions can you draw when the purchase prices for inventory arefalling? Chapter 6 Accounting for Merchandise Inventory 361 Problem 6—1 M Using the perpetual and periodic Titan Performance Tire began May with 50 units of inventory that cost $264 each. Duringinventory SYSTEWS May Titan Performance Tire completed these inventory transactions: (96) 3. Gross margin. $8,200 Unite Unit Cost Unit Selling PriceMay 2 12 $2708 27 264 $360 13 23 264 3603 27017 24 270 22 31 27029 24 290 Required 1. The above data are taken from Tltan Performance Tire's perpetual inventory records.Which cost method does Tltan Performance Tire use? 2. Compute Titan Performance Tire's cost ot goods sold for May under thea. Perpetual inventory systemb. Periodic inventory system . Compute gross margin for May.3.51] it 11m in