Beginning inventory + Purchases of inventory. = Available for sales - Cost of goods sold Ending inventory = BRIEF EXERCISE 6.10 BE6.10 (LO 5) Rosario Department Store uses a perpetual inventory system. Data for product E2-D2 include the following purchases. Date May 7 July 28 May 7 June 1 July 28 August 27 Beginning Inventory: Ending Inventory: Number of Units 50 30 On June 1, Rosario sold 26 units, and on August 27, 40 more units. Prepare the perpetual inventory schedule for the above transactions using (a) FIFO, (b) LIFO, and (c) moving-average cost. (Round average cost per unit to nearest cent.) Beginning Inventory: Ending Inventory: Unit Price $10 13 Solution: a- FIFO: Date Description Purchases (In) COGS (Out) Available (Balance) Q UC TCQ UC TC Q UC TC b-LIFO: Date Description Purchases (In) COGS (Out) Available (Balance) Q UC TCQ UC TC Q UC TC

Beginning inventory + Purchases of inventory. = Available for sales - Cost of goods sold = Ending inventory BRIEF EXERCISE 6,10 BF.6.1e (to s) Resario Department Slore uses a perpetual inventory sysent. Data for prudact F:-D2? inclade the folkowing purchases. On June 1. Rosario sold 26 units, and on August 27, 40 more units. Prepate the perpetual imveneory whedule for the ahone transactions uning (a) FIOO, (b) HIFO, and (c) mowing-average cost. (Rosad average cost per unit to nearest cent.) EXF.RCISE 6.8 E.6.s (to 2) Shawn Company had 100 units ia beginning imveasory at a weal coot of 510,000 . The coenpuny parchasd 200 units at a total cost of 526.000 . At lie end of the year, Shawa had 75 units in ending inventory. Instructions a. Compute the cost of the ending inveniory and the cont of goods wold under (1)FIFO, (2) LIFO, and (3) iverage-cost. b. Which cost flow method wodild result in the highect net income? c. Which cons flow micthot would result in imventories approxinating current cost in the balane shoet? d. Which cont flow method would resialt in Shawn paying the least taves in the firt year? (3) Average Cost Method b. Comparative table for the COGS using the 3 methods: c. d. Comparative table for the COGS using the 3 methods: Extra Exercise The stock movement of the raw material M during the month of March 2005 is given below:- - 01/03/2005: Stock 4000kg at an average cost of 100 LBP/kg. - 04/03/2005: purchase 6000kg for 105 LBP /kg. - 0803/2005: utilization of 3500kg in the workshop. - 12003/2005: purchase 2000kg for a total price of 210 250 L.BP. - 2003/2005; utilization of 4500kg in the workshop. - 2703/2005: utilization of 2000kg in the workshop. - 30/03/2005: purchase 6000kg for 101LBP/kg. Requined: Prepare the stock card for the raw material M according to: a. the weighted average method; b. FIFO : and C. LIFO Required: Prepare the stock card for the raw material M according toa 2. the weighted average method