Question
Surf Deals had the following inventory (surfboards) information available for June and records their inventory using the periodic inventory method. Date Transaction Units Unit Cost
Surf Deals had the following inventory (surfboards) information available for June and records their inventory using the periodic inventory method.
Date Transaction Units Unit Cost
June 1 Beginning inventory 100 $200
June 2 Purchase 100 $220
June 5 Sale @ $350 per unit (75)
June 18 Purchase 200 $225
June 25 Purchase 100 $230
June 29 Sale @ $360 per unit (200)
- Assume that the company uses the FIFO inventory method. Develop an inventory worksheet. (3 Marks)
- What is the total dollar value of the ending inventory on June 30 and the Cost of Goods Sold for June. (3 Marks)
Inventory: ___________ Cost of Goods Sold: ___________
- Assume that the company uses the periodic approach and Weighted Average inventory method. What is the total dollar value of the ending inventory on June 30 and its Cost of Goods Sold for June? (3 Marks)
Inventory: ___________ Cost of Goods Sold: ___________
- Which method would cause Surf Deals to have the highest gross margin? Why? (1 Mark)
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