Urban Glam Cosmetics made purchases of lipstick in the current year as follows: Jan. 1 Beginning inventory Mar. 14 Purchased July 30 Purchased Units available for sale Cost of goods available for sale 79 units @ $14.00 = 270 units @ $15.00 520 units @ $16.00 869 units Jan. 10 72 units Mar. 15 200 units Oct. 5 470 units 742 units Totals = $ 1,106 4,050 8,320 $13,476 Urban Glam Cosmetics made sales on the following dates at a selling price of $34 per unit:
Urban Glam Cosmetics made purchases of lipstick in the current year as follows: Jan. 1 Beginning inventory Mar. 14 Purchased July 30 Purchased Units available for sale Cost of goods available for sale 79 units @ $14.00 = 270 units @ $15.00 520 units @ $16.00 869 units Jan. 10 72 units Mar. 15 200 units Oct. 5 470 units 742 units Totals = $ 1,106 4,050 8,320 $13,476 Urban Glam Cosmetics made sales on the following dates at a selling price of $34 per unit:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Urban Glam Cosmetics made purchases of lipstick in the current year as follows:
Jan. 1 Beginning inventory
Mar. 14 Purchased
July 30 Purchased
Units available for sale
Cost of goods available for sale
79 units @ $14.00 = $ 1,106
270 units @ $15.00
520 units @ $16.00 =
4,050
8,320
869 units
Jan. 10 72 units
Mar. 15 200 units
Oct. 5 470 units
742 units
Totals
=
$13,476
Urban Glam Cosmetics made sales on the following dates at a selling price of $34 per unit:
Transcribed Image Text:5
Required:
The business uses a perpetual inventory system.
1. Determine the costs that should be assigned to the ending inventory and to goods sold under the following methods. (Do not round
intermediate calculations. Round your final answers to 2 decimal places.)
a. FIFO
b. Moving weighted average
Ending Inventory
a. FIFO
b. Moving weighted average
2. Also calculate the gross profit under each method. (Do not round intermediate calculations. Round your final answers to 2
decimal places.)
Cost of Goods
Sold
Gross Profit
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