Date Activities Mar. 1 Mar. 10 Mar. 20 Mar. 24 Mar. 30 Purchase Beginning inventory 200 units @ $6.00 300 units @ $7.00 100 units @ $8.00 Take2 Company uses a perpetual inventory system. Sales Purchase Sales Units purchased at cost Units sold at retail 120 units @ $12.00 210 units @ $15.00 (a) Determine the cost assigned to ending inventory and to the cost of goods sold using: (1) FIFO. (Provide calculation for cost assigned for ending inventory & total COGS) (ii) (iii) Weighted average cost. (Provide calculation for cost assigned for ending inventory & total COGS) Specific identification if the ending inventory consists of 90 units from March 30 purchase, 100 units from March 20 purchase and the balance from beginning inventory. (Provide calculation for cost assigned for ending inventory & total COGS) Workings must show the inventory movements and balance for each transaction. Round per unit cost to three decimal points and total cost to the nearest $ for the weighted average method.
Date Activities Mar. 1 Mar. 10 Mar. 20 Mar. 24 Mar. 30 Purchase Beginning inventory 200 units @ $6.00 300 units @ $7.00 100 units @ $8.00 Take2 Company uses a perpetual inventory system. Sales Purchase Sales Units purchased at cost Units sold at retail 120 units @ $12.00 210 units @ $15.00 (a) Determine the cost assigned to ending inventory and to the cost of goods sold using: (1) FIFO. (Provide calculation for cost assigned for ending inventory & total COGS) (ii) (iii) Weighted average cost. (Provide calculation for cost assigned for ending inventory & total COGS) Specific identification if the ending inventory consists of 90 units from March 30 purchase, 100 units from March 20 purchase and the balance from beginning inventory. (Provide calculation for cost assigned for ending inventory & total COGS) Workings must show the inventory movements and balance for each transaction. Round per unit cost to three decimal points and total cost to the nearest $ for the weighted average method.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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