Question

Required information Nora Corporationes perpetual vertory The Bor rachomated merchandise during 14. to di for Lee the story becera w reports August 20 c het and the cost of goods wouport Good Cow Goode - Cod 2. Determine the invertory balance Aura would report in August 2013 balance sheet and the cost of goods sold it would report in August 20 income statement sang the LIFO method Round "Contorno 2 imelles) Required information At Corporation uses a perpetual the month of August 20 entory system. The following transactions affected chandise vertory during 2. Detene te vertory balance Alor would report in August 31 201 balance sheet and the cost of goods ni Agust 2013 income statement using the average cost hound Average Coster Unitedci c would report es) Cowper y ang

Answer 1

Perpectual FIFO Cost of Goods available for sale Cost of Goods Sold - August 14 Cost of Goods Sold - August 25 Inventory Balance Date # of Units Cost per| Cost of Goods | # of Units Unit available for sale Sold Cost per Unit Cost of Goods Sold # of Units Sold Cost per Unit Cost of Goods Sold # of Tini Ending per Unit nventory 3700 $ 7.80 $ 28,860.00 3700 $ 7.80 $ 28,860.00 $ 7.80 $ - Beginning Inventory Purchases : August 8 August 18 11100 $ 7.20 $ 79,920.00 S - qust 18 18500 11100 $ 7.20 $ 6.40 $ $ 133,200.00 71,040.00 7400 6400 $ 7.20 $ 6.40 $ 53,280.00 $ 40,960.00 $ 7.20 $ 6.40 4700 $30,080.00 Total 33300 $ 233,100.00 14800 $ 108,780.00 13800 $ 94,240.00 4700 $30,080.00 Under FIFO Perpetual method: Ending Inventory Cost of goods Sold ($ 108780 + $ 94240) $ 30,080.00 $ 203,020.00

2) | Perpectual LIFO Cost of Goods available for sale Cost of Goods Sold -August 14 Inventory Balance Date Cost per Cost of Goods # of Units Unit available for sale Sold | $ 7.80 $ 28,860.00 | 0 # of Units Cost of Goods Sold -August 25 # of Cost per Cost of Units Unit Goods Sold Sold Cost per Unit Cost of Goods Sold Cost Ending |# of Units per Unit nventory 3700 $ 7.80 $28.860.00 3700 $ 7.80S Beginning Inventoryl Purchases : August 8 August 18 14800 $ 7.20 $ 106,560.00 18500 11100 $ 7.20 S 6.40 $ $ 133,200.00 71,040.00 11100 2700 $ 6.40 $ 7.20 $ 71.040.00 $ 19,440.00 0 1000 $ 6.40 $ 7.20 S $ 7,200.00 Total 33300 $ 233,100.00 14800 $ 106,560.00 13800 $ 90,480.00 4700 $36,060.00 Under LIFO Perpetual method: Ending Inventory Cost of goods Sold ($106560 + $ 90480) $36,060.00 $ 197,040.00

Perpetual Average Inventory on Hand Cost per # of Units Unit Inventory Value 3700 S 7.80 S 28,860.00 # of Units Sold Cost of Goods Sold Average Cost per Unit Sold Inventory Balance Cost Ending # of Units per Unit nventory 3700 $ 7.80 $ 28,860.00 Beginning Inventory Purchase-August 8 18500 $ 7.20 $ 133,200.00 3700 S 7.80 18500S 7.20 22200S 7.30 7400 $ 7.30 $ 28,860.00 $133,200.00 $162,060.00 $ 54,020.00 Sale - August 14 14800 S 7.30 $ 108,040.00 Purchase - August 18 11100 $ 6.40 $ 71,040.00 7400 S 7.30 11100 S 6.40 18500S 6.76 4700S 6.76 $ 54,020.00 $ 71,040.00 $125,060.00 $ 31,772.00 Sale - August 25 13800S 6.76 S 93,288.00 Total 33300 $ 233,100.00 28600 $ 201,328.00 $ 31,772.00 Under Perpetual Average method : Ending Inventory Cost of goods Sold ($108040 + $ 93288) $ 31,772.00 $ 201,328.00 Note : Average Cost per Unit = Total cost of Inventory / Total Units of Inventory Activate Win