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Smith Company uses the First-In, First Out method to track their perpetual inventory. Below is the purchase and sale history of cat treats: Date
Smith Company uses the First-In, First Out method to track their perpetual inventory. Below is the purchase and sale history of cat treats: Date Oct 1 Oct 2 Oct 8 Oct 10 Oct 25 Transaction Units Opening Bal Purchase Sale Purchase Sale $/Unit 103 $ 33 $ 103 115 $ 49 64.75 72.20 ??? 63.89 ??? REQUIRED: Determine the Cost of Goods Sold for the month of October and the ending Inventory balance for the month. What if the business changed to the Weighted Average method? What would be the value of the ending inventory in that case? Make sure you show all your work. (10 marks)
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SOLUTION To determine the Cost of Goods Sold COGS for the month of October and the ending inventory balance we need to calculate the cost of the remaining inventory after the sales transactions Using ...Get Instant Access to Expert-Tailored Solutions
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