Reference no: EM132772486

Dhaka electronics has the following inventory data:

Date                        Explanation Units             Unit              Cost             Total cost          Balance in Units

1/1/2020                 Begining                       180            10.5               1890                    180

Inventory

4/15/2020                 Purchases                   200                 11                2200                 380

8/24/2020                  Purchases                     330              12                   3960                710

9/10/2020                    Sales                          550                                                         160

11/27/2020                   Purchases                 400               13                  5200                 560

11/30/2020                       Sales                    250                                                                 310

                                                                                                            13250

Instructions:

Problem 1: Under perpectual inventory system, determine the cost of inventory on hand at December 31 and the cost of goods sold for march under a. FIFO, b. Average-Cost.

Problem 2: Determine the amount of gross profit under each method if sales revenue is 12500

Problem 3: Explain the impact of using different methods on net operating income.