Inventory Costing and Periodic and Perpetual inventorySystems
Redster Company is a manufacturing firm. Presented below isinformation concerning one of its products, called Ander.
Using an Excel spreadsheet, compute the cost of goods sold underthe following situations:
Date
Transaction
Quantity
Price/Cost
1/1
Beginning inventory
2,900
$10
2/12
Purchase
3,300
$15
3/2
Sale
2,400
$28
4/18
Purchase
4,500
$18
5/31
Sale
3,800
$30
a. Periodic system, FIFO cost flow
b. Perpetual system, FIFO cost flow
c. Periodic system, LIFO cost flow
d. Perpetual system, LIFO cost flow
e. Periodic system, weighted-average cost flow
f. Perpetual system, moving-average cost flow
Your submission must show all calculations used to arrive at theanswers. Insert comments, as needed, using Excelâs âAdd a Commentâfunction.
Inventory Costing and Periodic and Perpetual inventorySystems
Redster Company is a manufacturing firm. Presented below isinformation concerning one of its products, called Ander.
Using an Excel spreadsheet, compute the cost of goods sold underthe following situations:
Date | Transaction | Quantity | Price/Cost |
1/1 | Beginning inventory | 2,900 | $10 |
2/12 | Purchase | 3,300 | $15 |
3/2 | Sale | 2,400 | $28 |
4/18 | Purchase | 4,500 | $18 |
5/31 | Sale | 3,800 | $30 |
a. Periodic system, FIFO cost flow
b. Perpetual system, FIFO cost flow
c. Periodic system, LIFO cost flow
d. Perpetual system, LIFO cost flow
e. Periodic system, weighted-average cost flow
f. Perpetual system, moving-average cost flow
Your submission must show all calculations used to arrive at theanswers. Insert comments, as needed, using Excelâs âAdd a Commentâfunction.
Related questions
Part 3: The Warnerwood Company
The Warnerwood Company uses a perpetual inventory system. Itentered the following purchases and sales transactions for Marchinto the system:
Date | Activities | Units Acquired at Cost | Cost per Unit | Units Sold at Retail | Price per unit |
|---|---|---|---|---|---|
March 1 | Beginning inventory | 100 units | $50 | ||
March 5 | Purchase | 400 units | $55 | ||
March 9 | Sales | 420 | $85 | ||
March 18 | Purchase | 120 units | $60 | ||
March 25 | Purchase | 200 units | $62 | ||
March 29 | Sales |
| 160 units | $95 | |
Totals | 820 units | 580 units |
Instructions:
Show all of your work in an Excel spreadsheet for the followingtasks:
Compute the number of units available for sale.
Compute the number of units in ending inventory.
Compute the cost assigned to ending inventory using (a) FIFO,(b) LIFO, and (c) weighted average. (Round the average cost perunit to 2 decimal places.)
Compute the gross profit earned by the company for each of thethree costing methods. (Round the average cost per unit to 2decimal places.)
