Kate\'s Cards SP6 AL PROBLEM: KATE\'S CARDS SER is a continuation of the Serial
ID: 2546219 • Letter: K
Question
Kate's Cards SP6
AL PROBLEM: KATE'S CARDS SER is a continuation of the Serial Problemn: Kate's Cards from Chapters I thr Note As expected, the holiday season was very busy for Kate and her of her supplies were fully depleted by year-end, necessitating a re Kate uses the periodic method of accounting for inventory and that was S0. The following transactions occurred for Kate's Cards duri Purchases Jan. 10 Jan. 17 Jan. 23 Total $1,200 1,750 1,200 $4,150 400$3.00 per unit 500$3.50 per unit 300 $4.00 per unit 1,200 Sales Jan. 15 Jan. 21 Jan. 27 Total 360 420 380 1,160 Required a. Calculate the company's cost of goods sold and value of ending inventory for the month of Janu- y using (1) FIFO, (2) LIFO, and (3) the weighted-average cost method. Round the cost per unit to 3 decimal places and round your final answers to the nearest dollar b. If the replacement cost of Kate's inventory is $4.00 per unit on January 31 reported for her ending inventory on the January 31 balance sheet under each of the three inve tory costing methods?Explanation / Answer
a) Calculate cost of goods sold and ending inventory :
b) Calculate balance sheet reporting ending inventory :
FIFO LIFO Weighted average Cost of goods available for sale 4150 4150 4150 Ending inventory 40*4=160 40*3=120 (4150/1200*40)=138 Cost of goods sold 3990 4030 4012Related Questions
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