Question
Case 1: Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system . Determine the cost assigned
Case 1: Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to the ending inventory and cost of goods sold using FIFO, LIFO and Weighted Average Methods. (3 marks)
Date | Activities
| Units Acquired at Cost | Units Acquired at Cost |
May 1 | Beginning Inventory | 260 units @ $11 |
|
5 | Purchase | 275 units @ $13 |
|
10 | Sales |
| 195 units @ $21 |
15 | Purchase | 155 units @ $14 |
|
24 | Sales |
| 145 units @ $22 |
Answer:
FIFO perpetual
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Date | Purchases | CGS | Inventory Balance |
May 1 |
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5 |
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10 |
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15 |
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24 |
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Total
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LIFO perpetual | |||
Date | Purchases | CGS | Inventory Balance |
May 1 |
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5 |
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10 |
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15 |
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24 |
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Total
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Weighted Average Perpetual
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Date | Purchases | CGS | Inventory balance
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May 1 |
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5 |
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10 |
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15 |
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24 |
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Total |
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Case 2: Given the following information, determine the Cost of Goods Sold for December 31 under periodic inventory system using the FIFO, LIFO and Weighted Average methods. (1.5 marks)
December 2: 5 units were purchased at $7 per unit. December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit
December 15: 20 units were purchased at $10.15 per unit December 22: 18 units were sold at $35 per unit
Answer:
FIFO periodic
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Date | Goods available for sale | CGS | Ending Inventory |
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LIFO periodic
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Date | Goods available for sale | CGS | Ending Inventory |
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Weighted average periodic
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Date | Goods available for sale | CGS | Ending Inventory |
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