Wasco Company, Which Has a March 31 Fiscal Year, Issues

Essay

Wasco Company, which has a March 31 fiscal year, issues interim financial reports. Wasco sells a single unit of merchandise; the merchandise inventory, at first-in, first-out cost, was 14,000 units, $112,000, on April 1, 2005. Wasco purchased no merchandise during the year ended March 31, 2006. Quarterly sales and end-of-quarter merchandise replacement costs for the year ended March 31, 2006, were as follows:
Prepare a working paper to compute Wasco Company's cost of goods sold for the four quarters of the year ended March 31, 2006. Use the following headings: