Question
QUESTION 8 (Show Workings) The following information relates to the sale and purchase of inventory during January by CNC Pty Ltd., which uses the perpetual
QUESTION 8 (Show Workings)
The following information relates to the sale and purchase of inventory during January by CNC Pty Ltd., which uses the perpetual inventory method.
January 1 Beginning Inventory 150 items @ $3 = $450
January 14 Purchases 450 items @ $6 = $2,700
January 25 Sales 300 items @ $10 = $3,000
January 31 Ending Inventory 300 items
Required:
Calculate the Cost of Sales and the value of Ending Inventory for each of the methods indicated below based on the information provided on purchases and sales during the month of January.
- Cost of Sales using average cost $__________
- Cost of Sales using FIFO $__________
- Ending inventory using average cost $__________
- Ending Inventory using FIFO $__________
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