Sheffield Limited uses a perpetual inventory system. The inventory records show

Question

Sheffield Limited uses a perpetual inventory system. The inventory records show the following data for its first month of operations: Date Explanation Units Unit Cost Total Cost Balance in Units 244 736 443 1,379 1,048 Aug. 2 Purchases 244 492 (293) 936 573 $17,812 102 50,184 3 Purchases 10 Sales 15 Purchases 25 Sales 115 107,640 (a) [ Your answer is correct. Calculate the cost of goods sold and ending inventory using the FIFO cost method. Cost of goods sold Ending inventory 56572 119064 SHOW SOLUTION LINK TO TEXT (b) Calculate the cost of goods sold and ending inventory using the average cost method. (Round final answers to 2 decimal places, e.g. 1.25.) Cost of goods sold Ending inventory

Explanation / Answer

Calculate cost of goods sold and ending inventory under average cost method :

Cost of goods sold = 62732.21

Ending inventory = 112911.52

Purchase Cost of goods sold Ending inventory Date qty unit cost Total cost qty unit cost Total cost qty unit cost Total cost Aug 2 244 73 17812 244 73 17812 Aug 3 492 102 50184 736 92.39 67996 Aug 10 293 92.39 27070.27 443 92.39 40928.77 Aug 15 936 115 107640 1379 107.74 148568.77 Aug 25 331 107.74 35661.94 1048 107.74 112911.52 Balance 62732.21 112911.52

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.