Problem 6-2A: Alternative cost flows—perpetualL.O. P1 Marlow Company uses a perp
ID: 2433602 • Letter: P
Question
Problem 6-2A: Alternative cost flows—perpetualL.O. P1
Marlow Company uses a perpetualinventory system. It entered into the following calendar-year 2009purchases and sales transactions.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
Jan. 1
Beginning inventory
770 units
@ $50/unit
Feb. 10
Purchase
420 units
@ $41/unit
Mar. 13
Purchase
260 units
@ $25/unit
Mar. 15
Sales
770 units
@ $75/unit
Aug. 21
Purchase
180 units
@ $49/unit
Sept. 5
Purchase
585 units
@ $42/unit
Sept. 10
Sales
650 units
@ $75/unit
Totals
2,215 units
1,420 units
Requirement 1:
Compute cost of goods available for sale and thenumber of units available for sale. (Omit the "$" sign inyour response.)
Cost of goods available for sale
$
Number of units available for sale
units
Problem 6-2A: Alternative cost flows—perpetualL.O. P1
Explanation / Answer
2215 units
$95,610
1420units
$55,975
Cost of goods available forsale
$
Number of units available forsale
units
Date Units acquired atCost Total Cost Units sold COGS Jan. 1 Beginning inventory 770 units @ $50/unit $38,500 Feb. 10 Purchase 420 units @ $41/unit $17,220 Mar. 13 Purchase 260 units @ $25/unit $6,500 Mar. 15 Sales 770 units (260x25)+(420x41)+(90x50) $28,220 Aug. 21 Purchase 180 units @ $49/unit $8,820 Sept. 5 Purchase 585 units @ $42/unit $24,570 Sept. 10 Sales 650 units (585x42)+(65x49) $27,755 Total2215 units
$95,610
1420units
$55,975