Question
Weighted average cost flow method under perpetual inventory system The following units of a particular item were available for sale during the calendar year: Date
Weighted average cost flow method under perpetual inventory system
The following units of a particular item were available for sale during the calendar year:
| Date | Line Item Description | Units and Cost | |
|---|---|---|---|
| Jan. 1 | Inventory | 9,000 | units at $50.00 |
| Mar. 18 | Sale | 7,000 | units |
| May 2 | Purchase | 8,000 | units at $56.50 |
| Aug. 9 | Sale | 8,000 | units |
| Oct. 20 | Purchase | 4,000 | units at $60.00 |
The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round your "Unit Cost" answers to two decimal places.
| Date | Purchases Quantity | Purchases Unit Cost | Purchases Total Cost | Cost of Goods Sold Quantity | Cost of Goods Sold Unit Cost | Cost of Goods Sold Total Cost | Inventory Quantity | Inventory Unit Cost | Inventory Total Cost |
|---|---|---|---|---|---|---|---|---|---|
| Jan. 1 | fill in the blank 1 | fill in the blank 2 | fill in the blank 3 | ||||||
| Mar. 18 | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 | fill in the blank 7 | fill in the blank 8 | fill in the blank 9 | |||
| May 2 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 | fill in the blank 13 | fill in the blank 14 | fill in the blank 15 | |||
| Aug. 9 | fill in the blank 16 | fill in the blank 17 | fill in the blank 18 | fill in the blank 19 | fill in the blank 20 | fill in the blank 21 | |||
| Oct. 20 | fill in the blank 22 | fill in the blank 23 | fill in the blank 24 | fill in the blank 25 | fill in the blank 26 | fill in the blank 27 | |||
| Dec. 31 | Balances |
FIFO and LIFO costs under perpetual inventory system
The following units of an item were available for sale during the year:
| Line Item Description | Units and Cost |
|---|---|
| Beginning inventory | 40 units at $44 |
| Sale | 34 units at $68 |
| First purchase | 21 units at $45 |
| Sale | 11 units at $68 |
| Second purchase | 29 units at $48 |
| Sale | 23 units at $69 |
The firm uses the perpetual inventory system, and there are 22 units of the item on hand at the end of the year.
a. What is the total cost of the ending inventory according to FIFO? fill in the blank 1 of 2$
b. What is the total cost of the ending inventory according to LIFO? fill in the blank 2 of 2$
FIFO and LIFO costs under perpetual inventory system
The following units of an item were available for sale during the year:
Line Item Description Units and Cost Beginning inventory 40 units at $44 Sale 34 units at $68 First purchase 21 units at $45 Sale 11 units at $68 Second purchase 29 units at $48 Sale 23 units at $69 The firm uses the perpetual inventory system, and there are 22 units of the item on hand at the end of the year.
a. What is the total cost of the ending inventory according to FIFO? fill in the blank 1 of 2$ 672
b. What is the total cost of the ending inventory according to LIFO? fill in the blank 2 of 2$
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