Transcribed Image Text: A. First In, First Out Sales Revenue – Cost of Goods Sold … = Gross Margin %D B. Last In, First Out Sales Revenue … – Cost

Transcribed Image Text: A. First In, First Out
Sales Revenue
– Cost of Goods Sold

= Gross Margin
%D
B. Last In, First Out
Sales Revenue

– Cost of Goods Sold
= Gross Margin

C. Weightel Average
Sales Revenue

– Cost of Goods Sold
= Gross Margin
… Transcribed Image Text: PA1. 10.1 When prices are rising (inflation), which costing method would produce thehighestvalue for
gross margin? Choose between first-in, first-out (FIFO); last-in, first-out (LIFO); and weighted average
(AVG). Evansville Company had the following transactions for the month.
Number of Units
Cost per Unit
$6,000
7,000
7,500
Purchase
2
Purchase
3
Purchase
4
Calculate the gross margin for each of the following cost allocation methods, assuming A62 sold just one
unit of these goods for $10,000. Provide your calculations.
A. first-in, first-out (FIFO)
B. last-in, first-out (LIFO)
C. weighted average (AVG)

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