4. Kiwi Ltd., which uses a perpetual inventory system, recorded the following inventory transactions for this year :
Purchases Sales
Units Unit Cost Units Selling Price/Unit
Apr 1 Beginning inventory 90 $ 16
25 Purchase 300 18
May 4 Purchase 130 20
16 Sale 240 $32
Jun 4 Purchase 100 24
Instructions
show calculations Using the FIFO cost formula, calculate the cost of goods sold for the quarter ended June 30.
Under FIFO costs of goods sold consists of units from earliest purchases.
240 units sold May 16 consists of 90 units from beginning inventory and 150 units from April 25 purchases.
Cost of goods sold = (90 * $16) + (150 * $18)
= $1,440 + $2,700
= $4,140
4. Kiwi Ltd., which uses a perpetual inventory system, recorded the following inventory transactions for this...
4. Kiwi Ltd., which uses a perpetual inventory system, recorded the following inventory transactions for this year (20 marks): Purchases Sales Units Unit Cost Units Selling Price/Unit Apr 1 Beginning inventory 90 $ 16 25 Purchase 300 18 May 4 Purchase 130 20 16 Sale 240 $32 Jun 4 Purchase 100 24 Instructions (a) Using the FIFO cost formula, calculate the cost of goods sold for...
. Kiwi Ltd., which uses a perpetual inventory system, recorded the following inventory transactions for this year (20 marks): Purchases Sales Units Unit Cost Units Selling Price/Unit Apr 1 Beginning inventory 90 $ 16 25 Purchase 300 18 May 4 Purchase 130 20 16 Sale 240 $32 Jun 4 Purchase 100 24 Instructions (a) Using the FIFO cost formula, calculate the cost of goods sold for...
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