Inventory Costing Methods-Perpetual Method The Gleem Sales Corporation uses the perpetual inventory system. On January 1, 2015, Gleem had 2,600 units of product B with a unit cost of $40 per unit. A summary of purchases and sales during 2015 follows: Unit Cost Units Purchased Units Sold Jan. 3 1,600 Mar. 8 $44 3,000 June 13 2,000 Sept.19 46 800 Nov.23 48 1,200 Dec.28 1,800 Required a. Assume that Gleem uses the first-in, first-out method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product B. b. Assume that Gleem uses the last-in, first-out method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product B. c. Assume that Gleem uses the weighted-average cost method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product B. Do not round until your final answers. Round to the nearest dollar. a. First-In, First-Out Ending Inventory Cost of goods Sold b. Last-In, First-Out Ending Inventory Cost of Goods Sold c. Weighted Average Ending Inventory Cost of Goods Sold
Inventory Costing Methods-Perpetual Method The Gleem Sales Corporation uses the perpetual inventory system. On January 1, 2015, Gleem had 2,600 units of product B with a unit cost of $40 per unit. A summary of purchases and sales during 2015 follows: Unit Cost Units Purchased Units Sold Jan. 3 1,600 Mar. 8 $44 3,000 June 13 2,000 Sept.19 46 800 Nov.23 48 1,200 Dec.28 1,800 Required a. Assume that Gleem uses the first-in, first-out method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product B. b. Assume that Gleem uses the last-in, first-out method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product B. c. Assume that Gleem uses the weighted-average cost method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product B. Do not round until your final answers. Round to the nearest dollar. a. First-In, First-Out Ending Inventory Cost of goods Sold b. Last-In, First-Out Ending Inventory Cost of Goods Sold c. Weighted Average Ending Inventory Cost of Goods Sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Inventory Costing Methods-Perpetual Method The Gleem Sales Corporation uses the perpetual inventory system. On January 1, 2015, Gleem had 2,600 units of product B with a unit cost of $40 per unit. A summary of purchases and sales during 2015 follows:
| Unit Cost |
Units Purchased |
Units Sold |
|
|---|---|---|---|
| Jan. 3 | 1,600 | ||
| Mar. 8 | $44 | 3,000 | |
| June 13 | 2,000 | ||
| Sept.19 | 46 | 800 | |
| Nov.23 | 48 | 1,200 | |
| Dec.28 | 1,800 |
Required
a. Assume that Gleem uses the first-in, first-out method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product B.
b. Assume that Gleem uses the last-in, first-out method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product B.
c. Assume that Gleem uses the weighted-average cost method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product B. Do not round until your final answers. Round to the nearest dollar.
| a. | First-In, First-Out | |
| Ending Inventory | ||
| Cost of goods Sold | ||
| b. | Last-In, First-Out | |
| Ending Inventory | ||
| Cost of Goods Sold | ||
| c. | Weighted Average | |
| Ending Inventory | ||
| Cost of Goods Sold |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education