Question
(1)Ayayai Ltd. reports the following inventory transactions in a periodic inventory system for the month of June. A physical inventory count determined that 1,750 units
(1)Ayayai Ltd. reports the following inventory transactions in a periodic inventory system for the month of June. A physical inventory count determined that 1,750 units were on hand at the end of the month.
Date | Explanation | Units | Units Cost | Total Cost | ||||||
---|---|---|---|---|---|---|---|---|---|---|
June | 1 | Beginning inventory | 1,650 | $5 | $8,250 | |||||
12 | Purchases | 2,330 | 6 | 13,980 | ||||||
16 | Purchases | 4,760 | 7 | 33,320 | ||||||
23 | Purchases | 1,650 | 8 | 13,200 |
Determine the cost of the ending inventory and cost of goods sold using (1) FIFO and (2) average cost. (Round FIFO answers to the nearest whole dollar, e.g. 5,275 and Average cost answers to 2 decimal places, e.g. 15.25.)
FIFO | Average | |||
---|---|---|---|---|
Cost of the ending inventory | $enter a dollar amount | $enter a dollar amount | ||
Cost of goods sold | $enter a dollar amount | $enter a dollar amount |
(2) Riverbed Inc. is a retailer using the periodic inventory system. All sales returns from customers result in the goods being returned to inventory. (Assume that the inventory is not damaged.) Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Riverbed Inc. for the month of January.
Date | Description | Quantity | Unit Cost or Selling Price | ||||
---|---|---|---|---|---|---|---|
Dec. 31 | Beginning inventory | 160 | 20 | ||||
Jan. 2 | Purchase | 100 | 23 | ||||
Jan. 6 | Sale | 180 | 41 | ||||
Jan. 9 | Sale return | 10 | 41 | ||||
Jan. 9 | Purchase | 75 | 24 | ||||
Jan. 10 | Purchase return | 15 | 24 | ||||
Jan. 10 | Sale | 50 | 45 | ||||
Jan. 23 | Purchase | 100 | 26 | ||||
Jan. 30 | Sale | 120 | 50 |
(a)
Calculate (i) cost of goods sold and (ii) ending inventory using FIFO. (Assume sales returns had a cost of $20 and purchase returns had a cost of $24.)
(i) | Cost of goods sold | $enter a dollar amount | |||
---|---|---|---|---|---|
(ii) | Ending inventory | $enter a dollar amount |
(3) Marigold Limited uses a perpetual inventory system. The inventory records show the following data for its first month of operations:
Date | Explanation | Units | Unit Cost | Total Cost | Balance in Units | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. | 2 | Purchases | 259 | $70 | $18,130 | 259 | ||||||
3 | Purchases | 493 | 99 | 48,807 | 752 | |||||||
10 | Sales | (283 | ) | 469 | ||||||||
15 | Purchases | 876 | 118 | 103,368 | 1,345 | |||||||
25 | Sales | (341 | ) | 1,004 |
(a).
Calculate the cost of goods sold and ending inventory using the FIFO cost method.
Cost of goods sold | $enter a dollar amount |
---|---|
Ending inventory | $enter a dollar amount |
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