Mayhew AG has the following inventory, purchases, and sales data for the month of March. The physical inventory count on March 31 shows 500 units on hand. Inventory: March 1 200 units @ €4.00 € 800 Purchases: March 10 500 units @ €4.50 2,250 March 20 400 units @ €4.75 1,900 Sales: March 30 300 units @ €5.00 1,500 March 15 500 units March 25 400 units Instructions a. Under a periodic inventory system, determine the cost of inventory on hand at March 31 and the cost of goods sold for March under (1) FIFO and (2) average-cost. b. Under a perpetual inventory system, determine the cost of inventory on hand at March 31 and the cost of goods sold for March under (1) FIFO and (2) average-cost.
Mayhew AG has the following inventory, purchases, and sales data for the month of March. The physical inventory count on March 31 shows 500 units on hand. Inventory: March 1 200 units @ €4.00 € 800 Purchases: March 10 500 units @ €4.50 2,250 March 20 400 units @ €4.75 1,900 Sales: March 30 300 units @ €5.00 1,500 March 15 500 units March 25 400 units Instructions a. Under a periodic inventory system, determine the cost of inventory on hand at March 31 and the cost of goods sold for March under (1) FIFO and (2) average-cost. b. Under a perpetual inventory system, determine the cost of inventory on hand at March 31 and the cost of goods sold for March under (1) FIFO and (2) average-cost.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sh10
Transcribed Image Text:Q2.
Mayhew AG has the following inventory, purchases, and sales data for the
month of March. The physical inventory count on March 31 shows 500 units
on hand.
Inventory: March 1 200 units @ €4.00 € 800
Purchases: March 10 500 units @ €4.50 2,250
March 20 400 units @ €4.75 1,900
Sales:
March 30 300 units @ €5.00 1,500
March 15 500 units
March 25 400 units
Instructions
a. Under a periodic inventory system, determine the cost of inventory
on hand at March 31 and the cost of goods sold for March under (1)
FIFO and (2) average-cost.
b. Under a perpetual inventory system, determine the cost of inventory
on hand at March 31 and the cost of goods sold for March under (1)
FIFO and (2) average-cost.
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