A company reported the following December purchase and sales data for its only product:

 

The company uses a perpetual inventory system. Determine the cost assigned to ending inventory and to cost of goods sold using:

a. Specific identification: 8 units are from December 30^th purchase and 2 units are from the Dec 8^th purchase; Dec 9^th sold 2 units costing $3.00 each + 6 units @ $4.50 each = $33.00. Dec 24^th sold 3 units costing $3.00 each + 2 units @ $4.50 + 13 units @ $5.00 each = $83.00

b. FIFO

c. LIFO

d. Weighted Average

Transcribed Image Text:

Date Activity Units Acquired at Cost Units Sold at Retail Unit Inventory 1-Dec Beginning Inventory 5 units e $ 300 $ 5 mnits 15 8-Dec Purchases 10 units e $ 4.50 $ 45 15 units 8 units e $ 7 units 9-Dec Sales 56 19-Dec Purchases 13 units e $ 5.00 $ 65 20 units 24-Dec Purchases 18 units e $ 8 $ 2 units 144 24-Dec Sales 8 units e $5.30 $ 10 units Ending Inventory 4240 Totals 36 $ 16740 26 units sold units available for sale Goods avail- able for sale Date Activity Units Acquired at Cost Units Sold at Retail Unit Inventory 1-Dec Beginning Inventory 5 units e $ 300 $ 5 mnits 15 8-Dec Purchases 10 units e $ 4.50 $ 45 15 units 8 units e $ 7 units 9-Dec Sales 56 19-Dec Purchases 13 units e $ 5.00 $ 65 20 units 24-Dec Purchases 18 units e $ 8 $ 2 units 144 24-Dec Sales 8 units e $5.30 $ 10 units Ending Inventory 4240 Totals 36 $ 16740 26 units sold units available for sale Goods avail- able for sale

Answer rating: 100% (QA)

Answer A Ending Inventory 10 Units Total Cost 514 B Ending Inventory 10 Units Total Cost 524 C If 24 Dec Goods Purchased before Sales Than Ending Inve... View the full answer