Question
Measure cost of goods sold and ending inventoryperpetual system P5-46B Whitewater Sports Ltd. began July 2017 with 50 backpacks that cost $19 each. The sale
Measure cost of goods sold and ending inventoryperpetual system
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P5-46B Whitewater Sports Ltd. began July 2017 with 50 backpacks that cost $19 each. The sale price of each backpack was $36. During July, Whitewater completed these inventory transactions:
Units Unit Cost Unit Sale Price July 2 Purchase 12 $20 8 Sale 37 $36 13 Sale 13 36 Sale 4 37 17 Purchase 24 20 22 Sale 15 37
Requirement
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Determine the stores cost of goods sold, gross profit, and ending inventory using (a) FIFO and (b) weighted-average assuming the perpetual system is used.
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How would your answer change under (a) FIFO and (b) weighted-average cost if the periodic system was used?
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How do you determine which inventory system to use: perpetual or periodic?
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