The Obama Company has the following inventory purchases during the fiscal year ended December 31, 2023.

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:

Feb. 15: 221 units from beginning inventory

194 units from the February 13 purchase

Aug. 10: 216 units from beginning inventory

37 units from the February 13 purchase

67 units from the August 5 purchase

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... Aug. 5..... .619 units @ $78/unit .335 units @ $75/unit 215 units @ $88/unit Obama Company has two sales during the period. The units have a selling price of $138 per unit. Sales Feb. 15............. Aug. 10.. 415 units .320 units