Sandra’s Purse Boutique has the following transactions related to its top-sellin

Question

Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October 2015. Sandra's Purse Boutique uses a periodic inventory system.

Calculate ending inventory and cost of goods sold at October 31, 2015, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.

Using FIFO, calculate ending inventory and cost of goods sold at October 31, 2015.

Using LIFO, calculate ending inventory and cost of goods sold at October 31, 2015.

Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31, 2015.(Round your intermediate and final answers to 2 decimal places.)

Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October 2015. Sandra's Purse Boutique uses a periodic inventory system.

Explanation / Answer

Specific Identification Method: Date Cost of goods Sold Oct-04 Sales =4*720          2,880 Oct-13 Sales =(1*720)+(2*730)          2,180 Oct-28 Sales =(3*730)+(2*740)          3,670 Cost of Goods Sold as per Specific Identification          8,730 Closing Inventory = Total Purchase- cost of goods sold = 15430-8730 = 6700 FIFO Cumulative sales Qty = 14 Cumulative Purchase Qty = 20 Difference = 20-14 = 6 Since the last 6 pertains to Oct 30 purchase and hence inventory = 6*750 = 4500 Cost of Goods sold = total purchase - closing inventory = 15430-4500 = 10930 LIFO Date Transactions Units Cost per Unit Total Cost Cost of goods Sold Closing Inventory   October 1 Beginning inventory 6          720            4,320         4,320   October 4 Sale 4         2,880         1,440   October 10 Purchase 5          730            3,650         5,090   October 13 Sale 3 2190         2,900   October 20 Purchase 4          740            2,960         5,860   October 28 Sale 7 5150            710   October 30 Purchase 6          750            4,500         5,210          15,430      10,220 From the above table Cost of goods sold = 10,200 & closing inventory = 5210 Weighted avg Date Transactions Units Cost per Unit Total Cost Avg Price Cost of goods Sold Closing Inventory Closing Qty   October 1 Beginning inventory 6          720            4,320            720         4,320 6   October 4 Sale 4         2,880         1,440 2   October 10 Purchase 5          730            3,650      727.14         5,090 7   October 13 Sale 3 2,181.43         2,909 4   October 20 Purchase 4          740            2,960      733.57         5,869 8   October 28 Sale 7 5,135.00            734 1   October 30 Purchase 6          750            4,500      747.65         5,234 7          15,430      10,196 From the above table Cost of goods sold = 10,196 & closing inventory = 5234

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