Calculate the cost of goods available for sale
Overton Company uses a perpetual inventory system for its single product. Its beginning inventory, purchases and sales during calendar year 2021 follow.
|
Date |
Activity |
Units Acquired at Cost |
Units Sold at Retail |
Unit Inventory |
|
Jan 1 |
Beg. Inventory |
400 units @ $14 = $ 5,600 |
|
400 units |
|
Jan 15 |
Sale |
|
200 units @ $ 30 |
200 units |
|
March 10 |
Purchase |
200 units @ $ 15 = $ 3,000 |
|
400 units |
|
April 1 |
Sale |
|
200 units @ $ 30 |
200 units |
|
May 9 |
Purchase |
300 units @ $ 16 = $ 4,800 |
|
500 units |
|
Sept 22 |
Purchase |
250 units @ $ 20 = $ 5,000 |
|
750 units |
|
Nov 1 |
Sale |
|
300 units @ $ 35 |
450 units |
|
Nov 28 |
Purchase |
100 units @ $ 21 =$2,100 |
|
550 units |
|
Totals |
|
1,250 units $ 20,500 |
700 units |
|
Required
Calculate the cost of goods available for sale
Step by step
Solved in 3 steps
Calculate (a) ending inventory and (b) Cost of goods sold under the LIFO and AVCO inventory costing methods
by Bartleby Expert
