The following accounting information pertains to Boardwalk Taffy and Beach Sweets. The only difference between the two companies is that Boardwalk Taffy uses FIFO, while Beach Sweets uses LIFO. Cash Accounts receivable Merchandise inventory Accounts payable Cost of goods sold Building Sales Required A1 Required A2 Required a-1. Compute the gross margin percentage for each company. a-2. Identify the company that appears to be charging the higher prices in relation to its cost. b-1. For each company, compute the inventory turnover ratio and the average days to sell inventory. b-2. Identify the company that appears to be incurring the higher financing cost. Boardwalk Taffy $ 85,000 330,000 240,000 230,000 1,224,000 450,000 1,900,000 Complete this question by entering your answers in the tabs below. Boardwalk Taffy Beach Sweets Required B1 Required B2 Beach Sweets $ 85,000 330,000 Gross Margin 190,000 230,000 1,444,000 450,000 1,900,000 Compute the gross margin percentage for each company. (Round your answers to 1 decimal place.) % %

The following accounting information pertains to Boardwalk Taffy and Beach Sweets. The only difference between the two companies is that Boardwalk Taffy uses FIFO, while Beach Sweets uses LIFO. Cash Accounts receivable Merchandise inventory Accounts payable Cost of goods sold Building Sales Required A1 Required A2 Required a-1. Compute the gross margin percentage for each company. a-2. Identify the company that appears to be charging the higher prices in relation to its cost. b-1. For each company, compute the inventory turnover ratio and the average days to sell inventory. b-2. Identify the company that appears to be incurring the higher financing cost. Boardwalk Taffy $ 85,000 330,000 240,000 230,000 1,224,000 450,000 1,900,000 Complete this question by entering your answers in the tabs below. Boardwalk Taffy Beach Sweets Required B1 Required B2 Beach Sweets $ 85,000 330,000 Gross Margin 190,000 230,000 1,444,000 450,000 1,900,000 Compute the gross margin percentage for each company. (Round your answers to 1 decimal place.) % %

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 3E

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