Problem 6-63A Inventory Costing Methods

Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December for one of the items the company sells:

Activity	Units		Purchase Price (per unit)		Sale Price (per unit)
Beginning inventory	10		$6.00
Purchase 1, Dec. 2	22		6.80
Purchase 2, Dec. 5	26		7.50
Sale 1, Dec. 7	19				$12.00
Sale 2, Dec. 10	25				12.00
Purchase 3, Dec. 12	12		8.00
Sale 3, Dec. 14	20				12.00

Anderson's uses a perpetual inventory system. All purchases and sales were for cash.

Required:

1. Compute cost of goods sold and the cost of ending inventory using FIFO. If required, round your answers to the nearest cent.

Cost of goods sold	$
Cost of ending inventory	$

2. Compute cost of goods sold and the cost of ending inventory using the weighted average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest penny.)

Cost of goods sold	$
Cost of ending inventory	$

Feedback

Incorrect

3. Prepare the journal entries to record these transactions, assuming Anderson's chooses to use the FIFO method. If required, round your answers to the nearest cent.

Dec. 2	Inventory
	Cash
	(Purchased inventory)
Dec. 5	Inventory
	Cash
	(Purchased inventory)
Dec. 7	Cash
	Sales Revenue
	(Recorded cash sales to customers)
Dec. 7	Cost of Goods Sold
	Inventory
	(Recorded cost of goods sold)
Dec. 10	Cash
	Sales Revenue
	(Recorded cash sales to customers)
Dec. 10	Cost of Goods Sold
	Inventory
	(Recorded cost of goods sold)
Dec. 12	Inventory
	Cash
	(Purchased inventory)
Dec. 14	Cash
	Sales Revenue
	(Recorded cash sales to customers)
Dec. 14	Cost of Goods Sold
	Inventory
	(Recorded cost of goods sold)