Reference no: EM132762172

Question - Kim Corporation's inventory accounting records showed the following transactions, in order of occurrence, relative to Inventory, Item A:

Transaction

Date Description # of Units Unit

Cost Total

Cost Sales

Jan 1 Opening Inventory 2,500 $16.25 40,625

Jan 5 Purchase 22,500 $16.50 371,250

Jan 11 Sale @ $25.50/unit (8,750) 223,125

Jan 15 Purchase 7,500 $17.50 131,250

Jan 20 Sale @ $27.50/unit (20,000) 550,000

Jan 25 Purchase 3,750 $18.00 67,500

$610,625 $773,125

Required - Compute the ending inventory, cost of goods sold and gross profit for each of the following independent assumptions: (show all computations and calculate unit cost to two decimal places, e.g. $12.34).

Calculate the ending inventory in BOTH units and cost ($). Show your calculations and give the answers for:

1. Ending Inventory,

2. Cost of Goods Sold, and

3. Gross Profit (Gross Margin) - in dollars and Percentage, under each cost flow assumption.