Comprehensive in Class Problems Inventory Concepts

NAME____________________________________________

A company reported the following December purchase and sales data for its only product:

The company uses a perpetual inventory system. Determine the cost assigned to ending inventory and to cost of goods sold using:

1. Specific identification: 8 units are from December 30^th purchase and 2 units are from the Dec 8^th purchase; Dec 9^th sold 2 units costing $3.00 each + 6 units @ $4.50 each = $33.00. Dec 24^th sold 3 units costing $3.00 each + 2 units @ $4.50 + 13 units @ $5.00 each = $83.00
2. FIFO
3. LIFO
4. Weighted Average

Periodic $167.40/36 = average $4.65 Perpetual.every transaction requires a new average cost calc

Units Sold at Retail 8 units $ 7 $ 56 Date Activity Units Acquired at Cost 1-Dec Beginning Irwentory 5 units @ $ 3.00 $ 15 8-Dec Purchases 10 unitse $ 4.50 $ 45 9-Dec Sales 19 Dec purchases 13 unitse $ 5.00 $ 65 24-Dec Purchases 24 Dec Sales 8 unitse $5.30 $ 4240 Totals $ 167.40 units available for sale Goods avail- able for sale Unit Irwentory 5 units 15 units 7 units 20 units 2 units 10 units Ending Inventory 18 units @ $ 8 $ 144 26 units sold