Yoakum Company reported the following information related to inventory and sales: $$\begin{array} { | l | r | r | }
\hline & \text { Units } & \text { Unit Cost } \
\hline \text { Beginning inventory } & 100 & \$ 7 \
\hline \text { Purchase No. 1 } & 700 & 10 \
\hline \text { Purchase No. 2 } & 200 & 12 \
\hline
\end{array}$$ Sold 700 units at $20 each. Calculate the revenue, cost of goods sold, gross margin and inventory balances assuming a) the weighted average inventory cost method b) FIFO cost method

Question

Yoakum Company reported the following information related to inventory and sales: $$\begin{array} { | l | r | r | } 
\hline & \text { Units } & \text { Unit Cost } \
\hline \text { Beginning inventory } & 100 & \$ 7 \
\hline \text { Purchase No. 1 } & 700 & 10 \
\hline \text { Purchase No. 2 } & 200 & 12 \
\hline
\end{array}$$ Sold 700 units at $20 each. Calculate the revenue, cost of goods sold, gross margin and inventory balances assuming a) the weighted average inventory cost method b) FIFO cost method

Quizplus · Accepted Answer

The Answer of Yoakum Company reported the following information related to inventory and sales: $$\begin{array} { | l | r | r | } 
\hline & \text { Units } & \text { Unit Cost } \
\hline \text { Beginning inventory } & 100 & \$ 7 \
\hline \text { Purchase No. 1 } & 700 & 10 \
\hline \text { Purchase No. 2 } & 200 & 12 \
\hline
\end{array}$$ Sold 700 units at $20 each. Calculate the revenue, cost of goods sold, gross margin and inventory balances assuming a) the weighted average inventory cost method b) FIFO cost method

Yoakum Company Reported the Following Information Related to Inventory and Sales