Chapter 6 Problem 1

Ally Co. made the following merchandise Purchases and Sales during March:

March 1 Purchased 380 Units $15 each

March 5 Purchased 270 Units $17 each

March 10 Sold 400 Units Retail $50 each

March 20 Purchased 300 Units $22 each

March 25 Sold 400 Units Retail $50 each

Assume this is the first month of business for Ally Co. and there was no beginning balance of Inventory.

1) Calculate the Cost of Goods Purchased (Invoice Price) for the Purchase on March 1

2) Calculate the Cost of Goods Purchased (Invoice Price) for the Purchase on March 5 (Show all of your work)

3) Calculate the Cost of Goods Purchased (Invoice Price) for the Purchase on March 20 (Show all of your work)

4) Using the FIFO Method, Calculate the Cost of Goods Sold for the Sale on March 10 Sold (Show all of your work)

5) Using the LIFO Method, Calculate the Cost of Goods Sold for the Sale on March 10 Sold (Show all of your work)

6) Using the weighted-average Method, Calculate the Cost of Goods Sold for the Sale on March 10 Sold (Show all of your work)