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21) Garrison Company uses a perpetual inventory systerm for its one product. Gar

ID: 2572203 • Letter: 2

Question


21) Garrison Company uses a perpetual inventory systerm for its one product. Garrison's beginning inventory, purchases Garrison Company uses a permstal answer the three following questions): and sales during month of October are as follows (use data below to Units Sold e Activity 1-Oct Beg Inventory400$15.00 Unit Acquired Unit Cost 10-Oct Purchase 12-Oct Sale 15-Oct Purchase 17-Oct Sale 22-Oct Purchase 25-Oct Sale 29-Oct Purchase 200 150 $16.00 180 -250 2000-t-100 100 $21.00 The cost of goods sold under FIO method of inventory costing for the month of October is? A) $17,700 B) $11,400 C) $10,280 D) $10,652 E) $11,040 22) The cost of goods sold under weighted-average method of inventory costing for month of October is? A) $10,652 B) $11,040 C) $11,400 D) $17,700 E) $10,280

Explanation / Answer

Calculate cost of goods sold under FIFO method :

400

200

13

15

5200

3000

400

50

13

15

5200

750

150

150

15

16

2250

2400

150

30

15

16

2250

480

120

250

16

20

1920

5000

100

20

250

16

20

320

5000

20

250

100

16

20

21

320

5000

2100

so answer is c) $10280

22)Calculate cost of goods sold under weighted average method :

600

13.67

8200

450

13.67

6150

300

14.83

4450

180

14.83

2670

370

18.32

6780

100

270

18.32

4948

370

19.05

7048

so answer is a) $10652

Date quantity purchased unit cost total cost quantity sold unit cost cost of goods sold inventory on hand unit cost inventory cost oct 1 400 13 5200 oct 10 200 15 3000

400

200

13

15

5200

3000

oct 12

400

50

13

15

5200

750

150 15 2250 oct 15 150 16 2400

150

150

15

16

2250

2400

oct 17

150

30

15

16

2250

480

120 16 1920 oct 22 250 20 5000

120

250

16

20

1920

5000

oct 25

100

16 1600

20

250

16

20

320

5000

oct 29 100 21 2100

20

250

100

16

20

21

320

5000

2100

10280 7420
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