ID: A 9. Dur ing the first quarter of 20x7, Blake Company sold 12,000 cases of P
ID: 2577259 • Letter: I
Question
ID: A 9. Dur ing the first quarter of 20x7, Blake Company sold 12,000 cases of Product T for $120,000. Facts related to its beginning inventory and purchases are as follows Jan. Feb. 13 Purchases 5,000 cases @ $4.00 an 3. old 2a Cases Jan3). Sud 2a o cases Seld 2cco cases 1 Beginning inventory 10 Purchases 3,000-cases@ $5.00 cases @$4.50 2,000 cases @ $5.00 eh Mar. 5 Purchases Assume the perpetual inventory system is used For the quarter ended March 31, 20x7, compute the ending inventory and cost of goods sold under threce Feb. 28 ld Gjoeo cases methods: (a) average-cost, (b) FIFO, and (c) LIFO. (Show your work on the forms provided.)Explanation / Answer
a) Calculate ending inventory and cost of goods sold under perpetual average cost method :
Cost of goods sold 53000; ending inventory 28000
B) Calculate ending inventory and cost of goods sold under perpetual FIFO method :
3000
3000
4
5
12000
15000
1000
3000
4
5
4000
15000
1000
1000
4
5
4000
5000
2000
8000
5
4.5
10000
36000
2000
4000
5
4.5
10000
18000
4000
2000
4.5
5
18000
10000
Cost of goods sold 53000; ending inventory 28000
C) Calculate ending inventory and cost of goods sold under perpetual LIFO method :
3000
3000
4
5
12000
15000
3000
1000
4
5
12000
5000
1000
1000
5
4
5000
4000
2000
8000
4
4.5
8000
36000
2000
2000
4
4.5
8000
9000
2000
2000
2000
4
4.5
5
8000
9000
10000
Cost of goods sold 54000; ending inventory 27000
Date quantity purchase unit cost purchase cost quantity sold unit sold cost of goods sold inventory on hand unit cost ending inventory cost Beg inv 5000 4 20000 jan 3 2000 4 8000 3000 4 12000 jan 10 3000 5 15000 6000 4.5 27000 jan 31 2000 4.5 9000 4000 4.5 18000 feb 8 2000 4.5 9000 2000 4.5 9000 feb 13 8000 4.5 36000 10000 4.5 45000 feb 28 6000 4.5 27000 4000 4.5 18000 mar 5 2000 5 10000 6000 4.67 28000 Total 53000 28000