The Obama Company has two sales during the period. The units have a selling price of $165 per unit.

Obama Company uses a perpetual inventory system.

Required:
1. Calculate the dollar value of cost of goods sold and ending inventory using
(a) FIFO
(b) Moving weighted average method (round the average cost per unit to two decimal places).
2. Calculate the dollar value of cost of goods sold and ending inventory using specific identification
assuming the sales were specifically identified as follows:
Feb. 15: 175 units from beginning inventory
125 units from the February 13 purchase
Aug. 10: 15 units from beginning inventory
320 units from the August 5 purchase

3. Using information from your answers in Parts 1 and 2, journalize the credit sale on February 15 and the credit purchase on August 5 for each of:
a. FIFO
b. Moving weighted average
c. Specific identification

Transcribed Image Text:

Beginning.600 units $105/unit Feb. 13.. 200 units$109/unit Aug. 5 .. 345 units$112/unit