Yoakum Company Reported the Following Information Related to Inventory and Sales

Essay

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