The inventory records for Radford Company reflected the followingBeginning inventory on May 1First purchase on May 7second purchase on May 17Third purchase on May 23Sales on May 31What is the amount of gross margin assuming the FIFO cost flow method is used?Multiple ChoiceO$2,920$4,020$3,000100 units @ $4.00300 units @ $4.40500 units @ $4.60100 units @ $4.80900 units @ $7.80$3,420

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Description: The inventory records for Radford Company reflected the followingBeginning inventory on May 1First purchase on May 7second purchase on May 17Third purchase on May 23Sales on May 31What is the amount of gross margin assuming the FIFO cost flow method

Answer :Gross margin = Total sales - cost of good sold Total sales = 900 * $7.80 = $7,020 Cos of…

Business

Accounting

Beginning inventory on May 1 First purchase on May 7 second purchase on May 17 Third purchase on May 23 Sales on May 31 100 units @ $4.00 300 units @ $4.40 500 units@ $4.60 100 units@ $4.80 900 units@ $7.80 hat is the amount of gross margin assuming the FIFO cost flow method is use

Beginning inventory on May 1 First purchase on May 7 second purchase on May 17 Third purchase on May 23 Sales on May 31 100 units @ $4.00 300 units @ $4.40 500 units@ $4.60 100 units@ $4.80 900 units@ $7.80 hat is the amount of gross margin assuming the FIFO cost flow method is use

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter6: Receivables And Inventories

Section: Chapter Questions

Problem 6.4.4P: Inventory by three cost flow methods Details regarding the inventory of appliances on January 1,...

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