During August, BP Company sold 850 units of Product G. The beginning inventory a

Question

During August, BP Company sold 850 units of Product G. The beginning inventory and purchases during the month are below.

Assignment Template attached below.

The following sales were made during August.

Required: Using the perpetual inventory system, compute the following amounts. Place your answers in the template provided below.

1. Compute the total units available for sale.

2. Compute the total cost of the units available for sale.

3. Compute the cost of goods sold using the FIFO method.

4. Compute the ending inventory using the FIFO method.

5. Compute the cost of goods sold using the LIFO method.

6. Compute the ending inventory using the LIFO method.

7. Compute the cost of goods sold using the moving average method, round both total dollars and dollars per unit to the nearest cent.

8. Compute the ending inventory using the moving average method, round both total dollars and dollars per unit to the nearest cent.

9. For each method, what numbers do you get when you add the cost of goods sold and ending inventory together for both units and dollars?

Please show work - if you can.

August 1 Beginning Inventory Balance 150 units @ $2.00 August 5 Purchase 300 units @ $2.50 August 10 Purchase 200 units @ $2.75 August 25 Purchase 250 units @ $2.80 August 30 Purchase 100 units @ $2.80

Explanation / Answer

Solution:-

Part 1:- 1. Compute the total units available for sale:-

1,000 units.

Explanation:- 150 + 300 + 200 + 250 + 100 = 1,000 units

Part 2:- Compute the total cost of the units available for sale:-

$ 2,580

Explanation:- (150 * $2.00) + (300 * $2.50) + (200 * $2.75) + (250 * $2.80) + (100 * $2.80) = $ 2,580

Part 3:- Compute the cost of goods sold using the FIFO method:-

$ 2,160

Explanation:-

Part 4:- Compute the ending inventory using the FIFO method:-

$ 420

Explanation:-

(50 * 2.80) + (100 * 2.80) = $420

Note:- As per chegg guidelines if more than four subpart is posted than we liable to answer only first four subpart.

Please Rate or comment if you have any doubt regarding this solution.

Date Calculation Cost of goods sold August 4 130 * 2.00 260 August 6 (20 * 2) + (280 * 2.5) 740 August 13 (20 * 2.5) + (160 * 2.75) 490 August 28 (40 * 2.75) + (200 * 2.80) 670 Total cost of goods sold 2,160

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