Exercise 6 This Company uses the perpetual inventory method oS 1-Jun 10x $ 0.80=

Question

Exercise 6 This Company uses the perpetual inventory method oS 1-Jun 10x $ 0.80=$ 8.00 Beg. Inv Purchase 3-Jun 15 x $ 0.90=$ 13.50 8-un18 x $ 2.40-43.20 15-Jun 20 x $ 1.00=$ 20.00 Purchase 25-Jun 31 x $ 1.20=$ 37.20 2.40 76.80 Sale Purchase Sale 30-Jun 32 x S 34 35 37 39 40 41 Calculate COGS & Ending Inventory assuming the perpetual method FIFO Cost of Goods Sold Inventory Balance Date Units Cost/Unit Total Units Cost/Unit Total 1-Jun Purchase 3-Jun Beg. Inv 43 Total Sale8-Jun 45 46 47 48 49 50 51 52 53 54 Total Purchase 15-Jun Purchase 25-Jun Total Sale 30-Jun Total Cost of Goods Sold Ending Inventor

Explanation / Answer

FIFO

Cost of goods sold : 10*8+8*0.9+7*0.9+20*1+5*1.2 = 47.5

Ending inventroy : 26*1.2 = 31.2

LIFO

Cost of goods sold : 15*0.9+3*0.8+7*0.8+25*1.2 = 51.5

Ending inventroy : 20*1+6*1.2 = 27.2

Average cost

1-opening 10 0.8 8 3-purcahse 10 0.8 8 15 0.9 13.5 25 0.86 21.5 8-sale 18 0.86 15.48 7 0.86 6.02 15-purchase 7 0.86 6.02 20 1 20 31 1.2 37.2 58 1.09 63.22 20-sale 32 1.09 34.88 26 1.09 28.34

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