Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[The following information applies to the questions displayed below.] Sandras Purse Boutique has the following transactions related to its top-selling Gucci purse for the month

[The following information applies to the questions displayed below.] Sandras Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.

Date Transactions Units Unit Cost Total Cost
October 1 Beginning inventory 6 $ 750 $ 4,500
October 4 Sale 4
October 10 Purchase 5 760 3,800
October 13 Sale 3
October 20 Purchase 4 770 3,080
October 28 Sale 7
October 30 Purchase 6 780 4,680
$ 16,060

1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.

ending inventory
costs of good sold

2. Using FIFO, calculate ending inventory and cost of goods sold at October 31.

ending inventory
costs of goods sold

3. Using LIFO, calculate ending inventory and cost of goods sold at October 31.

ending inventory
costs of good sold

4. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31. (Round your intermediate and final answers to 2 decimal places.)

ending inventory
costs of goods sold

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Linda Smith Bamber, Karen Wilken Braun, Jr. Harrison, Walter T.

1st Edition

0138129711, 978-0138129712

More Books

Students also viewed these Accounting questions

Question

Describe the risk-based capital standards that insurers must meet.

Answered: 1 week ago

Question

Are summer stipends available?

Answered: 1 week ago

Question

5 Name at least three recruitment methods.

Answered: 1 week ago