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HOW DO I CALCULATE THE COST OF THE ENDING INVENTORY AND THE COST OF GOODS SOLD? Date   Explanation   Units   Unit Cost   Total Cost June 1   Inventory   150   $4     $600   12   Purchase   450   5     2,250   23   Purchase   400   6     2,400   30   Inventory   80             Assume a sale of 500 units occurred on June 15 for a selling price of $7 and a sale of 420 units on June 27 for $8.

HOW DO I CALCULATE THE COST OF THE ENDING INVENTORY AND THE COST OF GOODS SOLD? Date   Explanation   Units   Unit Cost   Total Cost June 1   Inventory   150   $4     $600   12   Purchase   450   5     2,250   23   Purchase   400   6     2,400   30   Inventory   80             Assume a sale of 500 units occurred on June 15 for a selling price of $7 and a sale of 420 units on June 27 for $8.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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HOW DO I CALCULATE THE COST OF THE ENDING INVENTORY AND THE COST OF GOODS SOLD?

Date
  
Explanation
  
Units
  
Unit Cost
  
Total Cost
June 1   Inventory   150   $4     $600  
12   Purchase   450   5     2,250  
23   Purchase   400   6     2,400  
30   Inventory   80            


Assume a sale of 500 units occurred on June 15 for a selling price of $7 and a sale of 420 units on June 27 for $8.

Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. (Round average-cost per unit to 3 decimal places, e.g. 12.520 and final answer to O decimal places, e.g. 1,250.) FIFO LIFO Moving-Average Cost The cost ending inventory $ 2$ The cost of goods sold 2$ 2$
Transcribed Image Text:Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. (Round average-cost per unit to 3 decimal places, e.g. 12.520 and final answer to O decimal places, e.g. 1,250.) FIFO LIFO Moving-Average Cost The cost ending inventory $ 2$ The cost of goods sold 2$ 2$
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