The following information relates to the inventory of Gadgets Ltd during May: May 1 Beginning inventory...

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The following information relates to the inventory of Gadgets Ltd during May: May 1 Beginning inventory 65 units @ $7 3 Purchased 75 units @ $10 10 Purchased 90 units @ $7 12 Sold 75 units 17 Sold 65 units 25 Sold 25 units Gadgets Ltd uses a perpetual inventory system. Ignore GST. Determine the cost of the ending inventory (assuming there have been no stock losses) and the cost of sales, using the following three methods: 1. Moving average method (For moving average, round intermediate calculations and final answers to 2 decimal places, eg. 52.75.) Ending inventory: Cost of sales: 2. Specific identification method; assume that the ending inventory on 31 May consisted of 11 units from the beginning inventory, 20 units from the 3 May purchase, and the remainder from the 10 May purchase Ending inventory: Cost of sales: 3. FIFO method Ending inventory: Cost of sales: %24 %24 The following information relates to the inventory of Gadgets Ltd during May: May 1 Beginning inventory 65 units @ $7 3 Purchased 75 units @ $10 10 Purchased 90 units @ $7 12 Sold 75 units 17 Sold 65 units 25 Sold 25 units Gadgets Ltd uses a perpetual inventory system. Ignore GST. Determine the cost of the ending inventory (assuming there have been no stock losses) and the cost of sales, using the following three methods: 1. Moving average method (For moving average, round intermediate calculations and final answers to 2 decimal places, eg. 52.75.) Ending inventory: Cost of sales: 2. Specific identification method; assume that the ending inventory on 31 May consisted of 11 units from the beginning inventory, 20 units from the 3 May purchase, and the remainder from the 10 May purchase Ending inventory: Cost of sales: 3. FIFO method Ending inventory: Cost of sales: %24 %24

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1 Cost of closing inventory and cost of sales using the average moving method The average cost is ob... View the full answer