Question 5 (16 points)

Inventory Costing - 16 Points (4 points each) (NO CREDIT for correct answers without showing computations.)

A company sells a single product and had the following beginning inventory, purchases, and sales during January:

								Unit
						Units		Cost
Beginning Inventory						30		$6.00
January 3 Sale						25
January 7 Purchase						45		$7.00
January 15 Purchase						40		$8.25
January 24 Sale						50

A. Calculate the total units in the ending inventory and the cost of goods available for sale. Ending Inventory ___________ Units Cost of Goods Available for Sale $________________

Calculate the ending inventory and cost of goods sold under each assumptions B through D below:

B. The company uses a PERPETUAL inventory system and determines cost on a FIFO basis.

Ending Inventory $ ______________ Cost of Goods Sold $ ______________

C. The company uses a PERPETUAL inventory system and determines cost on a LIFO basis.

Ending Inventory $ ___________ Cost of Goods Sold $ ___________

D. The company uses a PERPETUAL inventory system and determines cost by weighted-average.

Ending Inventory $ __________ Cost of Goods Sold $ __________

Question 5 options: