Question $3-$ Merchandise Costing $(10$ marks$)$

Below is the purchase and sale history of a company's product, maintained under the First$-$In$,$ First Out method, following the perpetual approach:

Date

Jul $1$

Jul $6$

Jul$13$ Jul $23$

Required:

Transaction Units

$$/$Unit

Opening Balance

Purchase

Sale

Purchase $18$

$???$ $ $7\mathrm{.}01$

$49$ $ $4\mathrm{.}33$

$12$ $ $6\mathrm{.}35$

$53$

a$)$ Determine the balances for ending Inventory and Cost of Goods Sold for the month of July under the First$-$ In$,$ First Out method. Make sure you show all your work.

$(5$ marks$)$

Date Inventory Cost of Goods Sold

b$)$ How would your answer change if you used the Weighted Average method instead?

$(5$ marks$)$

Date Inventory Cost of Goods SoldQuestion $3-$ Merchandise Costing $(10$ marks$)$

Below is the purchase and sale history of a company's product, maintained

under the First$-$In$,$ First Out method, following the perpetual approach:

Required:

a$)$ Determine the balances for ending Inventory and Cost of Goods Sold for the month of

July under the First$-$ In$,$ First Out method. Make sure you show all your work.

$(5$ marks$)$

b$)$ How would your answer change if you used the Weighted Average method

instead?

$(5$ marks$)$