Q1) Janet has discovered that selling merchandise is even more profitable than services her spa was giving. This is especially true as most of her clients are celebrities or other wealthy individuals, who do not mind paying top dollar for quality merchandise. Randy's Spa Supplies sells plush robes and slippers which Janet's customers can buy and take home after their spa treatment. Most popular item is silk-lined, 100% plush cotton robe. This merchandise has been selling extremely well at Janets Spa. Janet has decided to carry important amount of this inventory item. As Randy's Spa Supplies is still young company, amount it charges for robes varies from order to order. Information is given below for inventory and sales of these units of product in Randy's records.
| February 1 Beginning inventory balance |
120 units @ $65 per unit |
$7,800 |
| 2/3 purchases |
450 units @ $70 per unit |
$31,500 |
| 2/12 purchases |
360 units @ $72 per unit |
$25,920 |
| 2/20 purchases |
280 units @ $66 per unit |
$18,480 |
| 2/26 purchases |
216 units @ $64 per unit |
$13,824 |
Goods available for sale 1,426 units $97,524
Sales1,280 units
1. Suppose periodic inventory system is in use, what was Cost of Goods Sold if Average Cost Method is used? - There is slight rounding difference
2. Suppose periodic inventory system is in use, determine the value of ending inventory if Average Cost Method is used? There is a slight rounding difference
3. Suppose periodic inventory system is in use, compute the Cost of Goods Sold if LIFO Method is used?
4. Suppose Periodic inventory system is in use, compute value of ending inventory if LIFO Method is used?
5. Suppose periodic inventory system is in use, calculate Cost of Goods Sold if the FIFO Method is used?
6. Suppose periodic inventory system is in use, determine value of ending inventory if FIFO Method is used?