Mimeo Limited specializes in selling professional ballpoint pens. The business indicates the following inventory records for pens
Question:
Mimeo Limited specializes in selling professional ballpoint pens. The business indicates the following inventory records for pens for the month of August. Ignore GST.
Aug 1 Beginning inventory 2,111 units @ $1.04 each
4 Sold 1,098 units @ $4.30 each
9 Purchased 1,761 units @ $1.08 each
16 Purchased 1,350 units @ $1.07 each
21 Sold 2,300 units @ $4.40 each
27 Purchased 1,983 units @ $1.10 each
31 Sold 1,600 units @ $4.40 each
Required:
Determine the ending inventory, cost of goods sold and gross profit figure at 31 August under each of the following costing methods:
- First-in-first-out method (9 marks)
- Average cost method (9 marks)
- Specific identification method: (9 marks)
- the August 4 sales were from the opening balance;
- the August 21 sales were from the August 16 purchases and the remainder were from the August 9 purchase; and
- the August 31 sales were from the August 27 purchases
Spreadsheet Modeling & Decision Analysis A Practical Introduction to Management Science
ISBN: 978-0324656633
5th edition
Authors: Cliff T. Ragsdale