Calculate ending inventory using weighted-average cost


Response to the following problem:

Sandra's Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October 2012. Sandra's Purse Boutique uses a periodic inventory system.

Date           Transactions            Units       Cost per Unit     Total Cost

October 1 Beginning inventory      8              $760             $ 6,080

October 4 Sale                            4

October 10 Purchase                   7               770                5,390

October 13 Sale                          5

October 20 Purchase                   6               780                4 ,680

October 28 Sale                          9

October 30 Purchase                   8                790               6,320

$22,470

1. Calculate ending inventory and cost of goods sold at October 31, 2012, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of 1 purse from beginning inventory and 4 purses from the October 10 purchase, and the October 28 sale consists of 3 purses from the October 10 purchase and 6 purses from the October 20 purchase.

2. Using FIFO, calculate ending inventory and cost of goods sold at October 31, 2012.

3. Using LIFO, calculate ending inventory and cost of goods sold at October 31, 2012.

4. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31, 2012. (Round the weighted average cost per unit to 2 decimal places. Round your answers to the nearest dollar amount. )

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Cost Accounting: Calculate ending inventory using weighted-average cost
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