Question
Custom Prints Inc. (CPI) specializes in logo-imprinted coffee mugs. CPI tracks the number of units purchased and sold throughout each accounting period but applies its
Custom Prints Inc. (CPI) specializes in logo-imprinted coffee mugs. CPI tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, December 31. The inventorys selling price is $11 per unit.
Transactions | Unit Cost | Units | Total Cost |
Inventory December 1 | $4.50 | 250 | $1,125 |
Sale, December 10 |
| (200) |
|
Purchase, December 12 | $5.00 | 300 | $1,500 |
Sale, December 17 |
| (150) |
|
Purchase, December 26 | $6.00 | 80 | $480 |
- Compute the amount of goods available for sale at December 3 [1 mark]
- Compute the ending inventory, and cost of goods sold at December 31, under each of the following inventory costing methods: Specific identification, first in first out, weighted average method
- Assuming that the December 10 sale was from the beginning inventory and the December 17 sales was the December 12 purchase. [2 marks]
Cost of goods sold =
Ending Inventory =
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