Compute cost of goods sold and ending inventory balance


Response to the following problem:

Inventory Costing Methods-Perpetual Method Gleem Sales Corporation uses the perpetual inventory system On January 1, 2015 inventory Gleem had: 2,600 units of product B with a unit cost of $40 per unit A summary of purchases and sales during 2015 follows:

                 Units          Cost Purchased Sold

Jan. 3                                 1,600

Mar. 8         $44                   3,000

June 13                               2,000

Sept. 19       46                    800

Nov. 23        48                    1,200

Dec. 28                                1,800

Required:

a. Assume that Gleem uses the first-in, first-out method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product B.

b. Assume that Gleem uses the last-in, first-out method. Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product B.

c. Assume that Gleem uses the weighted-average cost method.

Compute the cost of goods sold for 2015 and the ending inventory balance at December 31, 2015, for product B.

Round the cost per unit to 3 decimal places and round your final answers to the nearest dollar.

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Cost Accounting: Compute cost of goods sold and ending inventory balance
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