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Problem 6-63A Inventory Costing Methods Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December for one of the

Problem 6-63A Inventory Costing Methods

Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December for one of the items the company sells:

Activity Units Purchase Price (per unit) Sale Price (per unit)
Beginning inventory 10 $6.00
Purchase 1, Dec. 2 22 6.80
Purchase 2, Dec. 5 26 7.50
Sale 1, Dec. 7 19 $12.00
Sale 2, Dec. 10 25 12.00
Purchase 3, Dec. 12 12 8.00
Sale 3, Dec. 14 20 12.00

Anderson's uses a perpetual inventory system. All purchases and sales were for cash.

Required:

1. Compute cost of goods sold and the cost of ending inventory using FIFO. If required, round your answers to the nearest cent.

Cost of goods sold $
Cost of ending inventory $

2. Compute cost of goods sold and the cost of ending inventory using the weighted average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest penny.)

Cost of goods sold $
Cost of ending inventory $

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3. Prepare the journal entries to record these transactions, assuming Anderson's chooses to use the FIFO method. If required, round your answers to the nearest cent.

Dec. 2 Inventory
Cash
(Purchased inventory)
Dec. 5 Inventory
Cash
(Purchased inventory)
Dec. 7
(Recorded cash sales to customers)
Dec. 7
(Recorded cost of goods sold)
Dec. 10
(Recorded cash sales to customers)
Dec. 10
(Recorded cost of goods sold)
Dec. 12
(Purchased inventory)
Dec. 14
(Recorded cash sales to customers)
Dec. 14
(Recorded cost of goods sold)

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