(Solution) - The Soft Touch Company sells leather furniture The following schedule -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Pages: 5 Words: 1375

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The Soft Touch Company sells leather furniture. The following schedule relates to the company's inventory for the month of April:

Soft Touch uses the perpetual inventory system. Required:
a. Calculate the cost of goods sold and ending inventory under each of the following costing assumptions:
1. FIFO
2. Moving average
b. Determine the gross margin under each of the costing assumptions calculated in part "a." Which of the costing assumptions produced the higher gross margin?