Sarasota Inc. uses a perpetual inventory system. Its records show the following for the month of May. Unit Total Date Explanation Units Cost Cost May 1 Inventory 33 $11 $363 May 15 Purchase 25 12 300 May 18 Sale (44) May 24 Purchase 39 13 Total 97 13 507 $1,170 (a) Your Answer Correct Answer (Used) Calculate the cost of goods sold for May and the ending inventory at May 31 using the FIFO formula. Cost of goods sold $ 495 Ending Inventory $ 675 (b) Calculate the cost of goods sold for May and the ending inventory at May 31 using the average cost formula. (For average, use 3 decimal places, eg. 15.235 in your calculations and round final answers to 2 decimal places, ea 5.25) Cost of goods sold $ Ending Inventory
Sarasota Inc. uses a perpetual inventory system. Its records show the following for the month of May. Unit Total Date Explanation Units Cost Cost May 1 Inventory 33 $11 $363 May 15 Purchase 25 12 300 May 18 Sale (44) May 24 Purchase 39 13 Total 97 13 507 $1,170 (a) Your Answer Correct Answer (Used) Calculate the cost of goods sold for May and the ending inventory at May 31 using the FIFO formula. Cost of goods sold $ 495 Ending Inventory $ 675 (b) Calculate the cost of goods sold for May and the ending inventory at May 31 using the average cost formula. (For average, use 3 decimal places, eg. 15.235 in your calculations and round final answers to 2 decimal places, ea 5.25) Cost of goods sold $ Ending Inventory
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 12RE: Carla Company uses the perpetual inventory system. The following information is available for...
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![Sarasota Inc. uses a perpetual inventory system. Its records show the following for the month of May.
Unit
Total
Date
Explanation
Units Cost
Cost
May
1 Inventory
33
$11
$363
May 15
Purchase
25
12
300
May
18
Sale
(44)
May
24
Purchase
39
13
Total
97
13
507
$1,170
(a)
Your Answer Correct Answer (Used)
Calculate the cost of goods sold for May and the ending inventory at May 31 using the FIFO formula.
Cost of goods sold
$
495
Ending Inventory
$
675
(b)
Calculate the cost of goods sold for May and the ending inventory at May 31 using the average cost formula. (For average, use 3
decimal places, eg. 15.235 in your calculations and round final answers to 2 decimal places, ea 5.25)
Cost of goods sold
$
Ending Inventory](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7ea5bf1-4df7-41b8-9640-419d1427c16a%2Fe4c57cc1-815a-42ef-a4dd-b3fba1d03569%2Fkym1bb_processed.png&w=3840&q=75)
Transcribed Image Text:Sarasota Inc. uses a perpetual inventory system. Its records show the following for the month of May.
Unit
Total
Date
Explanation
Units Cost
Cost
May
1 Inventory
33
$11
$363
May 15
Purchase
25
12
300
May
18
Sale
(44)
May
24
Purchase
39
13
Total
97
13
507
$1,170
(a)
Your Answer Correct Answer (Used)
Calculate the cost of goods sold for May and the ending inventory at May 31 using the FIFO formula.
Cost of goods sold
$
495
Ending Inventory
$
675
(b)
Calculate the cost of goods sold for May and the ending inventory at May 31 using the average cost formula. (For average, use 3
decimal places, eg. 15.235 in your calculations and round final answers to 2 decimal places, ea 5.25)
Cost of goods sold
$
Ending Inventory
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