QUESTION 2 incorrect0.00 poines out of 1.00Fg question inventory Costing Methods
ID: 2555615 • Letter: Q
Question
QUESTION 2 incorrect0.00 poines out of 1.00Fg question inventory Costing Methods-Perpetual Method Fortune Stores uses the perpetual inventory system for its merchandise inventory. The April 1 Inventory for one of the items in the merchandise inventory consisted of 120 units with a unit cost of $375. Transactions for this item during April were as follows: April 9 Purchased 40 units$395 per unit 14 Sold 80 unts 600 per unit 23 Purchased 20 units400 per un 29 Sold40 units Required a. Calculate the cost of goods sold and the ending inventory cost for answers to the nearest dollar he month of April using the weighted-average cost method. Do not round unti b. Calculate the cost of goods sold and the ending inventory cast for the month of April using the first-in, first-out method C Cakculate the cost of goods sold and the ending inventory cost for the month of April using the last-in, first-out method Weghted Average Ending inventory Cost of goods Sold Ending inventory Cost of Goods Sold:Explanation / Answer
(a).WEIGHTED AVERAGE METHOD INVENTORY SCHEDULE
No
Qty Purchased
Unit Cost
Total Cost
Qty Sold
Unit cost
Total cost
Inv.Qty
Unit Cost
Total cost
Apr 1
120
375
45000
Apr 9
40
395
15800
120
375
45000
40
395
15800
Apr 14
80
380
30400
80
380
30400
Apr 23
20
400
8000
80
380
30400
20
400
8000
Apr 29
40
384
15360
60
384
23040
TOTAL
45760
23040
Cost of goods sold = $ 45760
Ending Inventory = $ 23040
(b).FIFO METHOD INVENTORY SCHEDULE
No
Qty Purchased
Unit Cost
Total Cost
Qty Sold
Unit cost
Total cost
Inv.Qty
Unit Cost
Total cost
Apr 1
120
375
45000
Apr 9
40
395
15800
120
375
45000
40
395
15800
Apr 14
80
375
30000
40
375
15000
40
395
15800
Apr 23
20
400
8000
40
375
15000
40
395
15800
20
400
8000
Apr 29
40
375
15000
40
395
15800
20
400
8000
TOTAL
45000
23800
Cost of goods sold = $ 45000
Ending Inventory = $ 23800
(c).LIFO METHOD INVENTORY SCHEDULE
No
Qty Purchased
Unit Cost
Total Cost
Qty Sold
Unit cost
Total cost
Inv.Qty
Unit Cost
Total cost
Apr 1
120
375
45000
Apr 9
40
395
15800
120
375
45000
40
395
15800
Apr 14
40
395
15800
80
375
30000
40
375
15000
Apr 23
20
400
8000
80
375
30000
20
400
8000
Apr 29
40
375
15000
40
375
15000
20
400
8000
TOTAL
45800
23000
Cost of goods sold = $ 45800
Ending Inventory = $ 23000
No
Qty Purchased
Unit Cost
Total Cost
Qty Sold
Unit cost
Total cost
Inv.Qty
Unit Cost
Total cost
Apr 1
120
375
45000
Apr 9
40
395
15800
120
375
45000
40
395
15800
Apr 14
80
380
30400
80
380
30400
Apr 23
20
400
8000
80
380
30400
20
400
8000
Apr 29
40
384
15360
60
384
23040
TOTAL
45760
23040