Smart Tech's beginning inventory and purchases for the month of August were as follows: # of Units Cost per Unit Amount Beginning inventory 600 $7.00 $4,200 First purchase 400 $7.50 3,000 Second purchase 500 $8.00 4,000 Third purchase 300 $8.75 2,625 Number of units available for sale 1,800 $13,825 On hand 400 Number of units sold 1,400 Required: Calculate the total amount to be assigned to cost of goods sold and ending inventory for August 31, using each of the following methods. For the weighted-average method, round the average unit cost to two decimal places. Round all final answers to the nearest dollar.
Smart Tech's beginning inventory and purchases for the month of August were as follows: # of Units Cost per Unit Amount Beginning inventory 600 $7.00 $4,200 First purchase 400 $7.50 3,000 Second purchase 500 $8.00 4,000 Third purchase 300 $8.75 2,625 Number of units available for sale 1,800 $13,825 On hand 400 Number of units sold 1,400 Required: Calculate the total amount to be assigned to cost of goods sold and ending inventory for August 31, using each of the following methods. For the weighted-average method, round the average unit cost to two decimal places. Round all final answers to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Smart Tech's beginning inventory and purchases for the month of August were as follows:
| # of Units | Cost per Unit | Amount | ||
|---|---|---|---|---|
| Beginning inventory | 600 | $7.00 | $4,200 | |
| First purchase | 400 | $7.50 | 3,000 | |
| Second purchase | 500 | $8.00 | 4,000 | |
| Third purchase | 300 | $8.75 | 2,625 | |
| Number of units available for sale | 1,800 | $13,825 | ||
| On hand | 400 | |||
| Number of units sold | 1,400 |
Required:
Calculate the total amount to be assigned to cost of goods sold and ending inventory for August 31, using each of the following methods. For the weighted-average method, round the average unit cost to two decimal places. Round all final answers to the nearest dollar.
Transcribed Image Text:Cost of Goods Sold
Ending Inventory
a. First-in, first-out (FIFO) $
$4
b. Last-in, first-out (LIFO) $
c. Weighted-average cost
%24
%24
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