Question 16 (10 points)

Inventory Costing

The following information relates to the inventory flow of Maxs Sporting Goods:

1 March beginning inventory is 5 cricket bats @ $61 each

3 March purchased 7 cricket bats @ $58 each

6 March sold 4 cricket bats

8 March purchased 5 cricket bats @ $62 each

10 March sold 6 cricket bats

13 March sold 7 cricket bats

Required:

1. Assuming a perpetual inventory system, use the FIFO inventory costing method to calculate the cost of the goods sold at each sale (3 dates).

2. Assuming a periodic inventory system, use the weighted average inventory costing method to calculate the cost of the goods sold on 10 March.