Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October 2015.

1. Calculate ending inventory and cost of goods sold on October 31, 2015, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.

2. Using FIFO, calculate ending inventory and cost of goods sold on October 31, 2015.

3. Using LIFO, calculate ending inventory and cost of goods sold on October 31, 2015.

4. Using weighted-average cost, calculate ending inventory and cost of goods sold on October 31, 2015.

Transcribed Image Text:

Date Transactions Units Cost per Unit Total Cost October 1 Beginning inventory Sale $ 5,400 $900 October 4 October 10 October 13 Purchase 910 4,550 Sale October 20 Purchase 920 3,680 October 28 Sale October 30 Purchase 930 6,510 $20,140 6453 477 Date Transactions Units Cost per Unit Total Cost October 1 Beginning inventory Sale $ 5,400 $900 October 4 October 10 October 13 Purchase 910 4,550 Sale October 20 Purchase 920 3,680 October 28 Sale October 30 Purchase 930 6,510 $20,140 6453 477

Answer rating: 100% (QA)

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