Calculating the Value of Ending Inventory and Cost of Goods Sold: Perpetual Method. Consider the following inventory data for the first two months of the year for CompX International: Total Units Unit Cost Total Cost Beginning inventory on hand January 1 60,000 $2.10 $126,000 Purchases during month January 5 103,600 2.10 217,560 January 20 293,900 2.20 646,580 457,500 $990,140 Sales of inventory January 25 383,900 Beginning inventory at February 1 73,600 Purchases during month February 8 282,200 2.30 $649,060 February 23 153,500 2.70 414,450 509,300 Sales of inventory February 27 407,600 Ending Inventory 101,700
Calculating the Value of Ending Inventory and Cost of Goods Sold: Perpetual Method. Consider the following inventory data for the first two months of the year for CompX International: Total Units Unit Cost Total Cost Beginning inventory on hand January 1 60,000 $2.10 $126,000 Purchases during month January 5 103,600 2.10 217,560 January 20 293,900 2.20 646,580 457,500 $990,140 Sales of inventory January 25 383,900 Beginning inventory at February 1 73,600 Purchases during month February 8 282,200 2.30 $649,060 February 23 153,500 2.70 414,450 509,300 Sales of inventory February 27 407,600 Ending Inventory 101,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Calculating the Value of Ending Inventory and Cost of Goods Sold: Perpetual Method.
Consider the following inventory data for the first two months of the year for CompX International:
Total Units Unit Cost Total Cost
Beginning inventory on hand
January 1
60,000
$2.10
$126,000
Purchases during month
January 5
103,600
2.10
217,560
January 20
293,900
2.20
646,580
457,500
$990,140
Sales of inventory
January 25
383,900
Beginning inventory at
February 1
73,600
Purchases during month
February 8
282,200
2.30
$649,060
February 23
153,500
2.70
414,450
509,300
Sales of inventory
February 27
407,600
Ending Inventory
101,700](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb18a1840-29df-46e1-a477-d61c52a63cad%2F30e49e76-3352-43aa-bc8c-742e78617d0f%2Fz7ujuon_processed.png&w=3840&q=75)
Transcribed Image Text:Calculating the Value of Ending Inventory and Cost of Goods Sold: Perpetual Method.
Consider the following inventory data for the first two months of the year for CompX International:
Total Units Unit Cost Total Cost
Beginning inventory on hand
January 1
60,000
$2.10
$126,000
Purchases during month
January 5
103,600
2.10
217,560
January 20
293,900
2.20
646,580
457,500
$990,140
Sales of inventory
January 25
383,900
Beginning inventory at
February 1
73,600
Purchases during month
February 8
282,200
2.30
$649,060
February 23
153,500
2.70
414,450
509,300
Sales of inventory
February 27
407,600
Ending Inventory
101,700
![Required
1. Calculate the cost of goods sold and ending inventory for January and February under each of the following methods, assuming use of a perpetual inventory management system. Round
all answers to the nearest whole number.
January
February
Cost of
Ending
Cost of
Ending
Goods Sold
Inventory
Goods Sold
Inventory
a. FIFO
2$
20 $
20 $
20 $
20
b. LIFO
2$
20 $
20 $
20 $
20
c. Weighted-average.* $
20 $
20 $
20 $
20
*Do not round until your final answers.
2. Assume that the net realizable value of CompX International's ending inventory is $2.15 per unit on January 30 and $2.45 per unit on February 28. Calculate the value of the ending
inventory for January and February under each of the following methods. Round all answers to the nearest whole number.
January
February
a. FIFO
20 $
220
b. LIFO
2$
20 $
20
c. Weighted-average $
20 $
20](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb18a1840-29df-46e1-a477-d61c52a63cad%2F30e49e76-3352-43aa-bc8c-742e78617d0f%2F21v7lc_processed.png&w=3840&q=75)
Transcribed Image Text:Required
1. Calculate the cost of goods sold and ending inventory for January and February under each of the following methods, assuming use of a perpetual inventory management system. Round
all answers to the nearest whole number.
January
February
Cost of
Ending
Cost of
Ending
Goods Sold
Inventory
Goods Sold
Inventory
a. FIFO
2$
20 $
20 $
20 $
20
b. LIFO
2$
20 $
20 $
20 $
20
c. Weighted-average.* $
20 $
20 $
20 $
20
*Do not round until your final answers.
2. Assume that the net realizable value of CompX International's ending inventory is $2.15 per unit on January 30 and $2.45 per unit on February 28. Calculate the value of the ending
inventory for January and February under each of the following methods. Round all answers to the nearest whole number.
January
February
a. FIFO
20 $
220
b. LIFO
2$
20 $
20
c. Weighted-average $
20 $
20
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