The Obama Company has the following inventory purchases during the fiscal year ended December 31, 2020.

Obama Company has two sales during the period. The units have a selling price of $138 per unit.

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?SalesFeb. 15 ................................................................................... 415 unitsAug. 10 ................................................................................... 320 units

Obama Company uses a perpetual inventory system.

Required

1. Calculate the dollar value of cost of goods sold and ending inventory using

a. FIFO

b. Moving weighted average method (round the average cost per unit to two decimal places)

2. Calculate the dollar value of cost of goods sold and ending inventory using specific identification assuming the sales were specifically identified as follows:

3. Using information from your answers in Parts 1 and 2, journalize the credit sale on February 15, and the credit purchase on August 5 for each of:

a. FIFO

b. Moving weighted average

c. Specific identification

Transcribed Image Text:

Beginning. Feb. 13. $78/unit 619 units ...... 335 units 215 units $75/unit Aug. 5 . $88/unit Feb. 15: 221 units from beginning inventory 194 units from the February 13 purchase Aug. 10: 216 units from beginning inventory units from the February 13 purchase units from the August 5 purchase 37 67