Inventory Costing Methods-Perpetual Method The following information is for the
ID: 2570079 • Letter: I
Question
Inventory Costing Methods-Perpetual Method The following information is for the Bloom Company for 2012: the company sells just one product: Units Unit Cost Beginning Inventory Jan. 1 200 $11 Feb. 11 500 $15 May 18 400 Oct. 23 100 March 1 400 July 1 400 Purchases 17 21 Sales: Calculate the value of ending inventory and cost of goods sold using the perpetual method and (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods Do not round until your final answers. Round your final answers to the nearest dollar A. First-in, First-out Ending Inventory Cost of goods soldExplanation / Answer
a) First in First out method :
200
500
11
15
2200
7500
200
200
11
15
2200
3000
300
400
15
17
4500
6800
300
100
15
17
4500
1700
300
100
17
21
5100
2100
Cost of goods sold 11400; ending inventory 7200
b) Last in First out method :
200
500
11
15
2200
7500
400
15
6000
200
100
11
15
2200
1500
200
100
400
11
15
17
2200
1500
6800
400
17
6800
200
100
11
15
2200
1500
200
100
100
11
15
21
2200
1500
2100
Cost of goods sold 12800; ending inventory 5800
c) Weighted average cost method :
700
13.86
9700
400
13.86
5543
700
15.65
10957
400
15.65
6261
400
16.99
6796
Cost of goods sold 11804; ending inventory 6796
Date Quantity purchased Unit cost Purchase cost quantity sold unit cost cost of goods sold inventory unit unit cost inventory cost Jan 1 200 11 2200 Feb 111 500 15 7500200
500
11
15
2200
7500
Mar 1200
200
11
15
2200
3000
300 15 4500 May 18 400 17 6800300
400
15
17
4500
6800
July 1300
100
15
17
4500
1700
300 17 5100 Oct 23 100 21 2100300
100
17
21
5100
2100
Total 11400 7200Related Questions
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