Chelseas Cameras Ltd records its inventory of digital cameras by using a perpetual inventory system on a

Question:

Chelsea’s Cameras Ltd records its inventory of digital cameras by using a perpetual inventory system on a FIFO basis. The following details are supplied for one particular popular make and model for the month of November. Ignore GST.

Nov. 1

Inventory on hand consisted of 18 cameras costed at $160 each.

Purchases:

Nov. 2

Nov. 20

Nov. 25

10 cameras at $150 each

20 cameras at $165 each

30 cameras at $158 each

Sales:

Nov. 4

Nov. 22

Nov. 29

16 cameras at $290 each

22 cameras at $290 each

20 cameras at $310 each

Required

A. Prepare an inventory record showing the above transactions.

B. Assuming instead that the company uses the moving average method of recording cost of sales, calculate the cost of sales and ending inventory balance for the month of November and compare your answers with those from requirement A.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...

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