Question
Jeannies Books sells discount hard back novels. The inventory, purchases, and sales for a recent month in chronological order are as follows: Activities Unit Unit
Jeannies Books sells discount hard back novels. The inventory, purchases, and sales for a recent month in chronological order are as follows:
Activities | Unit | Unit cost ($) |
Beginning Inventory, May 1 | 100 | $4.00 |
Puchase, May 8 | 140 | $4.25 |
Sale, May 10 | 160 | - |
Purchase, May 16 | 220 | $4.50 |
Purchase, May 22 | 120 | $4.80 |
Sale, May 28 | 330 | - |
Assume that Jeannies Books uses a periodic inventory system.
Instructions
Compute the cost of goods sold relating to the sales in May and the ending inventory of Jeannies Books at May 31, using the following cost flow assumptions:
1. FIFO
2. LIFO
3. Average Cost
Show the number of units and the unit costs of each inventory layer comprising the ending inventory. You may determine the cost of goods sold by deducting ending inventory from the cost of goods available for sale.
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