Business

Huber

11 August, 05:09

Inventory Records Widget Tek's original accountant accepted a position with another firm and left in early March. You have been asked to review the subsidiary inventory ledger record for Widget Tek's main product for March:

Date Quantity Unit Cost Total Cost

Mar. 1 850 $98.00 $83,300

1,275 $95.00 $121,125

Mar. 8 650 $98.00 $63,700

Mar. 11 325 $98.00 $31,850

Mar. 14 325 $98.00 $31,850

780 $103.00 $80,340

Mar. 22 260 $98.00 $25,480

Mar. 25 260 $98.00 $25,480

1,900 $100.00 $190,000

Study the inventory record for March and answer the questions that follow.

a. Assuming that the product sells for $170 and that 80% of sales are on account, determine the gross profit from sales for March.

b. Making the same assumptions as in (1), determine the ending inventory cost for March.