BE6.6 (LO 2) (Apply perpetual FIFO and average cost.) Battery Limited uses a perpetual inventory system. The inventory records show the following data for its first month of operations: Date Explanation Units Aug. 2 Purchases 250 3 Purchases 500 10 Sales (300) 15 Purchases 900 25 Sales (325) Unit Cost/Price $ 70 100 150 120 180 Total Cost $ 17,500 50,000 108,000 Balance in Units 250 750 450 1,350 1,025 Calculate the cost of goods sold and ending inventory using (a) FIFO and (b) average cost (for average cost, use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer); and (c) calculate the gross profit for the month of August.
BE6.6 (LO 2) (Apply perpetual FIFO and average cost.) Battery Limited uses a perpetual inventory system. The inventory records show the following data for its first month of operations: Date Explanation Units Aug. 2 Purchases 250 3 Purchases 500 10 Sales (300) 15 Purchases 900 25 Sales (325) Unit Cost/Price $ 70 100 150 120 180 Total Cost $ 17,500 50,000 108,000 Balance in Units 250 750 450 1,350 1,025 Calculate the cost of goods sold and ending inventory using (a) FIFO and (b) average cost (for average cost, use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer); and (c) calculate the gross profit for the month of August.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:BE6.6 (LO 2) (Apply perpetual FIFO and average cost.) Battery Limited uses a perpetual
inventory system. The inventory records show the following data for its first month of
operations:
Date Explanation Units
Aug. 2 Purchases
250
3 Purchases
500
(300)
900
(325)
10 Sales
15 Purchases
25 Sales
Unit Cost/Price
$ 70
100
150
120
180
Total Cost
$ 17,500
50,000
108,000
Balance in Units
250
750
450
1,350
1,025
Calculate the cost of goods sold and ending inventory using (a) FIFO and (b) average cost (for
average cost, use unrounded numbers in your calculations but round to the nearest cent for
presentation purposes in your answer); and (c) calculate the gross profit for the month of
August.
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