Learning Tree, Inc.

The following data is available for one of the products sold by Learning Tree, Inc., which uses the perpetual

inventory system:

May 1 On hand, 1,000 units at $2.00 each $2,000

5 Purchased 2,000 units at $2.75 each 5,500

10 Sold 2,500 units at $16 each

18 Purchased 2,000 units at $4.00 each 8,000

24 Sold 1,500 units at $12 each

31 On hand, 1,000 units

17. Refer to the data for Learning Tree, Inc.

If the moving average method is used, what is the amount assigned to cost of goods sold for the 2,500 units sold on

May 10?

Carlton, Inc.

Carlton, Inc. reported the following information for 2015 and 2014:

2015 2014

Sales $951,200 $890,000

Sales discounts 12,000 23,000

Purchases 580,000 600,000

Inventory, December 31 46,000 40,000

Transportation-in 18,000 19,000

Purchase discounts 4,000 5,000

18. Refer to the information for Carlton, Inc.

How much is the cost of purchases for 2015?

Learning Tree, Inc.

The following data is available for one of the products sold by Learning Tree, Inc., which uses the perpetual

inventory system:

May 1 On hand, 1,000 units at $2.00 each $2,000

5 Purchased 2,000 units at $2.75 each 5,500

10 Sold 2,500 units at $16 each

18 Purchased 2,000 units at $4.00 each 8,000

24 Sold 1,500 units at $12 each

31 On hand, 1,000 units

19. Refer to the data for Learning Tree, Inc.

Explain why the amounts for ending inventory are different under the two average cost methodsweighted average

(periodic) and moving average (perpetual).