Question
Car Armour sells car wash cleaners. Car Armour uses a perpetual inventory system and made purchases and sales of a particular product in 2020 as
Car Armour sells car wash cleaners. Car Armour uses a perpetual inventory system and made purchases and sales of a particular product in 2020 as follows:
| Jan. | 1 | Beginning inventory | 130 | units | @ | $ | 6.60 | = | $ | 858.00 | |||
| Jan. | 10 | Sold | 60 | units | @ | $ | 15.10 | = | 906.00 | ||||
| Mar. | 7 | Purchased | 260 | units | @ | $ | 5.90 | = | 1,534.00 | ||||
| Mar. | 15 | Sold | 120 | units | @ | $ | 15.10 | = | 1,812.00 | ||||
| July | 28 | Purchased | 510 | units | @ | $ | 5.70 | = | 2,907.00 | ||||
| Oct. | 3 | Purchased | 460 | units | @ | $ | 5.60 | = | 2,576.00 | ||||
| Oct. | 5 | Sold | 620 | units | @ | $ | 15.10 | = | 9,362.00 | ||||
Required:
1. Calculate the total goods available for sale (in units and cost).
2. Calculate the number of units sold and units remaining in ending inventory.
3. Determine the share of the cost of goods available for sale calculated in Part 1 that should be assigned to ending inventory and to goods sold.
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
