Required

a$.$ Calculate both cost of goods sold and ending inventory using $($i$)$ FIFO and $($ii$)$ moving weighted average.

b$.$ Big T Cleaners took a physical inventory count at the end of October and discovers four boxes of cleaner are missing from inventory. Prepare the journal entry to adjust inventory assuming they use FIFO under a perpetual inventory system.

 

Transcribed Image Text:

Big T Cleaners uses a perpetual inventory system. The following selected transactions for Big T Cleaners occurred in October. Date Description Units Unit Cost Unit Selling Price October 1 Beginning Inventory 12 $164 1 Purchase 50 170 4 Sale 27 $270 10 Sale 23 270 Purchase 33 175 18 Sale 24 270 Purchase 31 190 30 Sale 24 280 Big T Cleaners uses a perpetual inventory system. The following selected transactions for Big T Cleaners occurred in October. Date Description Units Unit Cost Unit Selling Price October 1 Beginning Inventory 12 $164 1 Purchase 50 170 4 Sale 27 $270 10 Sale 23 270 Purchase 33 175 18 Sale 24 270 Purchase 31 190 30 Sale 24 280 Big T Cleaners uses a perpetual inventory system. The following selected transactions for Big T Cleaners occurred in October. Date Description Units Unit Cost Unit Selling Price October 1 Beginning Inventory 12 $164 1 Purchase 50 170 4 Sale 27 $270 10 Sale 23 270 Purchase 33 175 18 Sale 24 270 Purchase 31 190 30 Sale 24 280

Answer rating: 100% (QA)

a Calculating Cost of Goods Sold COGS and Ending Inventory i FIFO FirstIn FirstOut Beginning Invento... View the full answer