Mimeo Limited specializes in selling professional ballpoint pens. The business indicates the following inventory records for pens for the month of August. Ignore GST.

Aug 1                 Beginning inventory            2,111 units @ $1.04 each

          4                 Sold                                       1,098 units @ $4.30 each

          9                 Purchased                            1,761 units @ $1.08 each

          16              Purchased                            1,350 units @ $1.07 each

          21              Sold                                       2,300 units @ $4.40 each

          27              Purchased                            1,983 units @ $1.10 each

          31              Sold                                       1,600 units @ $4.40 each

Required:

Determine the ending inventory, cost of goods sold and gross profit figure at 31 August under each of the following costing methods:

1. First-in-first-out method (9 marks)
2. Average cost method (9 marks)
3. Specific identification method: (9 marks)

• the August 4 sales were from the opening balance;
• the August 21 sales were from the August 16 purchases and the remainder were from the August 9 purchase; and
• the August 31 sales were from the August 27 purchases

Answer rating: 100% (QA)

Mimeo Limited Inventory Analysis August Given Information Mimeo Limited sells professional ballpoint ... View the full answer