Solution-Compute the amount of ending inventory ross

Compute the amount of ending inventory ross

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Reference no: EM13536116

Effect of inventory cost flow on ending inventory balance and gross margin

Ross Sales had the following transactions for DVDs in 2010, its first year of operations.

Jan. 20	Purchased 75 units @ $15	=	$1,125
Apr. 21	Purchased 450 units @ $20	=	9,000
July 25	Purchased 300 units @ $23	=	6,900
Sept. 19	Purchased 100 units @ $26	=	2,600

During the year, Ross Sales sold 850 DVDs for $60 each.

Required

a. Compute the amount of ending inventory Ross would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average.

b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.

Reference no: EM13536116

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Compute the amount of ending inventory ross

Reference no: EM13536116

Reference no: EM13536116

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