Question

# The following schedule relates to the company's inventory for the month of April. The Company Uses...

The following schedule relates to the company's inventory for the month of April. The Company Uses the Perpetual Inventory System. Calculate the Company's Cost of Goods Sold, Gross Margin, and Ending Inventory using Weighted-Average.

April 1: Beginning Inventory 72 Units ---- Total Cost = \$42,768

April 3: Purchase 48 Units ---- Total Cost = \$29,712

April 5: Sale 27 Units ----Total Cost = \$30,483

April 11: Purchase 24 Units ---Total Cost = \$15,480

April 15: Sale 56 Units ---Total Cost = \$67,312

April 22: Sale 37 Units --- Total Cost = \$42,624

April 28: Purchase 48 Units ---Total Cost = \$32,736

Weighted Average:

 Date Purchases COGS Balance April Units Cost per unit Total Cost Units Cost per unit Total Cost Units Cost per unit Total Cost 1 72 594 42,768 3 48 619 29,712 120 604 72,480 5 27 604 16,308 93 604 56,172 11 24 645 15,480 117 612.41 71,652 15 56 612.41 34,295 61 612.41 37,357 22 37 612.41 22,659 24 612.42 14,698 28 48 682 32,736 72 658.81 47,434 Total 120 77,928 120 73,262 72 47,434

Cost of Goods Sold = \$73,262

Gross Margin = Gross Margin / Sales * 100

Gross Margin = Sales - Cost of Goods Sold

= (30,483 + 67,312 + 42,624) - 73,262

= 140,419 - 73,262

= \$67,157

Gross Margin % = 67,157 / 140,419 * 100

= 47.83%

Ending Inventory = \$47,434

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