ACCT215 Study Guide - Quiz Guide: Perpetual Inventory, Weighted Arithmetic Mean, Cost Basis
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7. FIFO Method: Perpetual Inventory System
Assume the following data with regard to inventory for Vegan Company:
Aug. 1 | Inventory | 40 | units @ $10 per unit | $ 400 | ||
8 | Purchase | 50 | units @ $11 per unit | 550 | ||
22 | Purchase | 35 | units @ $12 per unit | 420 | ||
Goods available for sale | 125 | units | $1,370 | |||
Aug. 15 | Sale | 45 | units | |||
28 | Sale | 25 | units | |||
Inventory, Aug. 31 | 55 | units |
Calculate the cost of ending inventory and cost of goods sold according to the FIFO method under the perpetual inventory system.
FIFO Method | |
Cost of ending inventory: | $ |
Cost of goods sold: | $ |
USE THE PERPETUAL METHOD FORINVENTORY.
Date | event | Number of units | Unit cost | Total cost |
Dec. 1 | Beg. Inventory | 500 | $10 | $5,000 |
Dec. 8 | purchase | 600 | 11 | 6,600 |
Dec. 13 | purchase | 300 | 12 | 3,600 |
Dec. 15 | Sale | 750 | ||
Dec. 24 | purchase | 300 | 13 | 3,900 |
Dec. 28 | purchase | 400 | 15 | 6,000 |
Dec. 30 | sale | 650 |
How do you calculate Cost of goods sold and endinginventory using the weighted average, FIFO, and LIFO inventorycosting methods?
Weighted Ave. Cost | FIFO | LIFO | |
Ending inventory | |||
Cost of Goods Sold |
Montoure Companyuses a perpetual inventory system. It entered into the followingcalendar-year 2013 purchases and sales transactions. |
Date | Activities | Units Acquired at Cost | Units Sold at Retail | ||||||||||||||
Jan. | 1 | Beginning inventory | 700 | units | @ | $ | 50 | /unit | |||||||||
Feb. | 10 | Purchase | 300 | units | @ | $ | 46 | /unit | |||||||||
Mar. | 13 | Purchase | 100 | units | @ | $ | 40 | /unit | |||||||||
Mar. | 15 | Sales | 780 | units | @ | $ | 70 | /unit | |||||||||
Aug. | 21 | Purchase | 110 | units | @ | $ | 55 | /unit | |||||||||
Sept. | 5 | Purchase | 570 | units | @ | $ | 52 | /unit | |||||||||
Sept. | 10 | Sales | 680 | units | @ | $ | 70 | /unit | |||||||||
Totals | 1,780 | units | 1,460 | units | |||||||||||||
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1. | Compute cost ofgoods available for sale and the number of units available forsale.
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