Question

Exercise 6-4 Alternative cost flow assumptions-perpetual inventory system L02 eXcel Sport Box sells a wide variety of sporting equipment. The following is information on the purchases and sales of their top selling hockey stick. The hockey stick sells for $125. Description Units Unit Cost Mar. 1 Beginning Inventory $40 15 Purchase Mar. 3 $45 60 Mar. 6 Purchase 110 $50 Sale Mar. 17 55 Mar. 23 Purchase $50 50 Mar. 31 Sale 140 Required Calculate the cost of goods sold and ending inventory under the perpetual inventory system using a. FIFO b. Moving weighted average. (Do not round your "Unit Cost" answers. Round all other intermediate and final answers to nearest whole dollar.)

Answer 1

Requirement a.

Goods Purchased Cost of Goods Sold Inventory Balance Cost per Cost per Date Cost per Cost of Inventory #of units #of units #of units unit unit unit Goods Sold Balance Mar. 01 15 40.00 600 40.00 Mar. 03 60 45.00 15 600 60 45.00 2700 Mar. 06 110 50.00 15 40.00 600 60 45.00 2700 110 50.00 5500 Mar. 17 15 40.00 600 0 40.00 0 45.00 40 1800 20 45.00 900 0 50.00 0 110 50.00 5500 Mar. 23 50 50.00 20 45.00 900 8000 160 50.00 45.00 Mar. 31 20 45.00 900 0 0 2000 120 50.00 6000 40 50.00 Total 350 195 9300 17300

Requirement b:

Inventory Balance Cost per Goods Purchased Cost of Goods Sold Cost per Cost per Cost of Date Inventory #of units #of units #of units unit unit unit Goods Sold Balance 600 Mar. 01 15 40.00 600 Mar. 03 60 45.00 15 40.00 60 45.00 2700 Average 75 44.00 3300 3300 Mar. 06 110 50.00 75 44.00 110 50.00 5500 47.57 Average 185 8800 47.57 Mar. 17 55 2616 130 47.57 6184 Mar. 23 50 50.00 130 47.57 6184 50 50.00 2500 Average 180 48.24 8684 48.24 Mar. 31 140 48.24 6754 40 1930 Total 195 9370 40 1930