E Menu QUESTION 5 Incorrect 0.00 points out of 4.00 Flag questicn Inventory Cost
ID: 2408577 • Letter: E
Question
E Menu QUESTION 5 Incorrect 0.00 points out of 4.00 Flag questicn Inventory Costing Methods-Perpetual Method Fortune Stores uses the perpetual Inventory system for its merchandise Inventory. The April 1 inventory for one of the items in the merchandise Inventory consisted of 120 units with a unit cost of $395. Transactions for this term during April were as follows Finish April 9 Purchased 40 units $415 per unit 14 Sold 23 Purchased 20 units @ 420 per unit 29 Sold 80 units 620 per unit 40 units Required a. Calculate the cost of goods sold and the ending inventory cost for the month of April using the weighted-average cost method. Do not round until your final answers. Round your final answers to the nearest dollar. b. Calculate the cost of goods sold and the ending inventory cost for the month of April using the first- in, first-out method C. Calculate the cost of goods sold and the ending inventory cost for the month of April using the last-in, first-out method a. Weighted Average nding inventory23040xExplanation / Answer
a)
WEIGHTED AVERAGE COST METHOD
Opening Inventory
Purchase Inventory
Cost of Goods sold
Ending Inventory
Date
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Apr-01
120
395
47400
120
395
47400
Apr-09
40
415
16600
160
400
64000
Apr-14
80
400
32000
80
400
32000
Apr-23
20
420
8400
100
404
40400
Apr-29
40
404
16160
60
404
24240
TOTAL
47400
25000
48160
24240
Inventory on Hand =
24240
Cost of goods sold =
48160
b)
FIFO METHOD
Opening Inventory
Purchase Inventory
Sale Inventory
Ending Inventory
Date
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Apr-01
120
395
47400
120
395
47400
Apr-09
40
415
16600
120
395
47400
40
415
16600
Apr-14
80
395
31600
40
395
15800
40
415
16600
Apr-23
20
420
8400
40
395
15800
40
415
16600
20
420
8400
Apr-29
40
395
15800
40
415
16600
20
420
8400
TOTAL
47400
25000
47400
25000
Inventory on Hand =
25000
Cost of goods sold =
47400
c)
LIFO METHOD
Opening Inventory
Purchase Inventory
Sale Inventory
Ending Inventory
Date
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Apr-01
120
395
47400
120
395
47400
Apr-09
40
415
16600
120
395
47400
40
415
16600
Apr-14
40
415
16600
80
395
31600
40
395
15800
Apr-23
20
420
8400
80
395
31600
20
420
8400
Apr-29
40
395
15800
40
395
15800
20
420
8400
TOTAL
47400
25000
48200
24200
Inventory on Hand =
24200
Cost of goods sold =
48200
a)
WEIGHTED AVERAGE COST METHOD
Opening Inventory
Purchase Inventory
Cost of Goods sold
Ending Inventory
Date
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Apr-01
120
395
47400
120
395
47400
Apr-09
40
415
16600
160
400
64000
Apr-14
80
400
32000
80
400
32000
Apr-23
20
420
8400
100
404
40400
Apr-29
40
404
16160
60
404
24240
TOTAL
47400
25000
48160
24240
Inventory on Hand =
24240
Cost of goods sold =
48160
b)
FIFO METHOD
Opening Inventory
Purchase Inventory
Sale Inventory
Ending Inventory
Date
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Apr-01
120
395
47400
120
395
47400
Apr-09
40
415
16600
120
395
47400
40
415
16600
Apr-14
80
395
31600
40
395
15800
40
415
16600
Apr-23
20
420
8400
40
395
15800
40
415
16600
20
420
8400
Apr-29
40
395
15800
40
415
16600
20
420
8400
TOTAL
47400
25000
47400
25000
Inventory on Hand =
25000
Cost of goods sold =
47400
c)
LIFO METHOD
Opening Inventory
Purchase Inventory
Sale Inventory
Ending Inventory
Date
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Qty
Price
Total
Apr-01
120
395
47400
120
395
47400
Apr-09
40
415
16600
120
395
47400
40
415
16600
Apr-14
40
415
16600
80
395
31600
40
395
15800
Apr-23
20
420
8400
80
395
31600
20
420
8400
Apr-29
40
395
15800
40
395
15800
20
420
8400
TOTAL
47400
25000
48200
24200
Inventory on Hand =
24200
Cost of goods sold =
48200
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