erstop Corporation sells ite A as part Its product Information the beginning inventory, purchases, sales of Item e given in the following table for the first six months of the current year. The company uses a perpetual inventory system: te nuary 1 (beginning inventory) nuary 24 bruary 8 rch 16 ne 11 uired: Purchases Number of Units Unit Cost Sales Number of Units Sales Price 560 $3.70 360 $5.20 660 $3.80 360 $5.20 660 $3.80 ompute the cost of ending inventory by using the weighted-average costing method. (Do not round intermediate calculations and nd the final answer to 2 decimal places.) Answer is complete and correct. ing inventory $ 4,396.400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory, purchases, and sales of item
A are given in the following table for the first six months of the current year. The company uses a perpetual inventory system:
Date
January 1 (beginning inventory)
January 24
February 8
March 16
June 11
Purchases
Sales
Number of Units Unit Cost
560
Number of Units Sales Price
$3.70
360
$5.20
660
$3.80
360
$5.20
660
$3.80
Required:
1. Compute the cost of ending inventory by using the weighted-average costing method. (Do not round intermediate calculations and
round the final answer to 2 decimal places.)
Answer is complete and correct.
Ending inventory
$ 4,396.40
2. Compute the gross profit for the first six months of the current year by using the FIFO costing method. (Do not round intermediate
calculations and round the final answer to 2 decimal places.)
Answer is complete and correct.
Gross profit
$ 1,064.00
Transcribed Image Text:Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory, purchases, and sales of item A are given in the following table for the first six months of the current year. The company uses a perpetual inventory system: Date January 1 (beginning inventory) January 24 February 8 March 16 June 11 Purchases Sales Number of Units Unit Cost 560 Number of Units Sales Price $3.70 360 $5.20 660 $3.80 360 $5.20 660 $3.80 Required: 1. Compute the cost of ending inventory by using the weighted-average costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.) Answer is complete and correct. Ending inventory $ 4,396.40 2. Compute the gross profit for the first six months of the current year by using the FIFO costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.) Answer is complete and correct. Gross profit $ 1,064.00
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