Kiwi Ltd. started April with 90 units in inventory costing $16 each. Kiwi Ltd., which uses a perpetual inventory system, had the following inventory transactions in April: Purchases Sales Units Unit Cost Units Selling Price/Unit 4 Purchase 300 18 12 Sale 240 $32 21 Purchase 100 24 29 Sale 165 $35 Instructions Using the FIFO cost formula, calculate the cost of goods sold for the month ended April Show calculations in the table below. Using the average cost formula, calculate the ending inventory at April 30. Show calculations in the table on the next page. Round to two decimals for all calculations. Use the ROUNDED values in your calculations. (a) Perpetual Inventory Record––FIFO PURCHASES COST OF GOODS SOLD INVENTORY ON HAND DA TE QTY UNIT COST TOTAL COST QTY UNIT COST TOTAL COST QTY UNIT COST TOTAL COST Cost of Goods Sold under FIFO = ____________________. (b) Perpetual Inventory Record––Average Cost PURCHASES COST OF GOODS SOLD INVENTORY ON HAND DATE QTY UNIT COST TOTAL COST QTY UNIT COST TOTAL COST QTY UNIT COST TOTAL COST Inventory value at Apr. 30 under Average Cost = _______________.

Kiwi Ltd. started April with 90 units in inventory costing $16 each. Kiwi Ltd., which uses a perpetual inventory system, had the following inventory transactions in April: Purchases Sales Units Unit Cost Units Selling Price/Unit 4 Purchase 300 18 12 Sale 240 $32 21 Purchase 100 24 29 Sale 165 $35 Instructions Using the FIFO cost formula, calculate the cost of goods sold for the month ended April Show calculations in the table below. Using the average cost formula, calculate the ending inventory at April 30. Show calculations in the table on the next page. Round to two decimals for all calculations. Use the ROUNDED values in your calculations. (a) Perpetual Inventory Record––FIFO PURCHASES COST OF GOODS SOLD INVENTORY ON HAND DA TE QTY UNIT COST TOTAL COST QTY UNIT COST TOTAL COST QTY UNIT COST TOTAL COST Cost of Goods Sold under FIFO = ______. (b) Perpetual Inventory Record––Average Cost PURCHASES COST OF GOODS SOLD INVENTORY ON HAND DATE QTY UNIT COST TOTAL COST QTY UNIT COST TOTAL COST QTY UNIT COST TOTAL COST Inventory value at Apr. 30 under Average Cost = _.

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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Question

Kiwi Ltd. started April with 90 units in inventory costing $16 each. Kiwi Ltd., which uses a perpetual inventory system, had the following inventory transactions in April:

		Purchases		Sales
		Units Unit Cost	Units	Selling Price/Unit
4	Purchase	300 18
12	Sale		240	$32
21	Purchase	100 24
29	Sale		165	$35

Instructions

Using the FIFO cost formula, calculate the cost of goods sold for the month ended April

Show calculations in the table below.

Using the average cost formula, calculate the ending inventory at April 30. Show calculations in the table on the next page. Round to two decimals for all calculations. Use the ROUNDED values in your calculations.

(a)

	Perpetual Inventory Record––FIFO
		PURCHASES	COST OF GOODS SOLD	INVENTORY ON HAND
DA	TE	QTY	UNIT COST	TOTAL COST	QTY	UNIT COST	TOTAL COST	QTY	UNIT COST	TOTAL COST

Cost of Goods Sold under FIFO = ____________________.

(b)

Perpetual Inventory Record––Average Cost
	PURCHASES	COST OF GOODS SOLD	INVENTORY ON HAND
DATE	QTY	UNIT COST	TOTAL COST	QTY	UNIT COST	TOTAL COST	QTY	UNIT COST	TOTAL COST

Inventory value at Apr. 30 under Average Cost = _______________.

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