The following information applies to the questions displayed below Park Company

Question

The following information applies to the questions displayed below Park Company reported the folowing March purchases and sales data for its only product Mar. 1 Beginning Inventory 150 units$700-$1,050 Mar. 10 Sales Mar.20 Purchase Mar 25 Sales Mar. 30 Purchase 90 units e $15 220 units o $6.00-1320 90 units @ $5.00450 460 units 145 units@ $15 Totels $2,820 235 units Park uses a perpetual inventory system. For specific identufication, ending Inventory consists of 225 unts, where 90 are from the March 30 purchase, 80 are from the March 20 purchase, and 55 are from beginning inventory 3. value 10.00 points 1. Determine the cost assigned to ending inventory and to cost of goods sold using specific identfication (Omit the "$" sign in your response.) Ending inventory Cost of goods sold Hints References Hint #1

Explanation / Answer

Solution:-

(1)

(2)

Weighted Avg unit price = [(150*7)+(220*6)+(90*5)] / 460 = 6.13

COGS = 235*6.13 = 1440.55

Inventory = 225*6.13 = 1379.25

(3)

FIFO:-

Inventory :- (90*5) + (135*6) = 1260

COGS :- (150*7) + (85*6) = 1560

Ending Inventory (90*5)+(80*6)+(55*7) = 385 COGS (95*7)+ (140*6) = 1505

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