Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Chapter 8, Problem 8.16E
Average cost method; periodic and perpetual systems
• LO8–1, LO8–4
The following information is taken from the inventory records of the CNB Company for the month of September:
| Beginning inventory, 9/1/2018 | 5,000 units @ $10.00 |
| Purchases: | |
| 9/7 | 3,000 units @ $10.40 |
| 9/25 | 8,000 units @ $10.75 |
| Sales: | |
| 9/10 | 4,000 units |
| 9/29 | 5,000 units |
7,000 units were on hand at the end of September.
Required:
1. Assuming that CNB uses a periodic inventory system and employs the average cost method, determine cost of goods sold for September and September’s ending inventory.
2. Repeat requirement 1 assuming that the company uses a perpetual inventory system.
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Larkspur, Inc. uses a periodic inventory system and reports the following for the month of June.
Unit
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Total Cost
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130
$5
$ 650
12
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2,040
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(a)
X Your answer is incorrect.
Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round per unit cost to
3 decimal places, e.g. 15.647 and final answers to 0 decimal places, e.g. 5,125.)
FIFO
LIFO
Average-cost
Cost of the ending
inventory
2$
1640
1310
$
1464
Cost of goods sold
2$
2630
2$
2960
2$
2806
Help with Perpetual FIFO LIFO Weighted average and Specfic ID
Chapter 8 Solutions
Intermediate Accounting
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