Question

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Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.

Date	Transactions	Units	Cost per Unit	Total Cost
October 1	Beginning inventory	6	$780	$ 4,680
October 4	Sale	4
October 10	Purchase	5	790	3,950
October 13	Sale	3
October 20	Purchase	4	800	3,200
October 28	Sale	7
October 30	Purchase	6	810	4,860
				$16,690

Required:

1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.

2. Using FIFO, calculate ending inventory and cost of goods sold at October 31.
  

3. Using LIFO, calculate ending inventory and cost of goods sold at October 31.
  

4. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
  

Answer 1

14 Periodic : FIFO Goods Purchasd Cost of Goods Sold Inventory Balance Cost Per cost of Goods # of Units Cost Per Unit Available for sales sold Unit Cost of # of Goods Sold Units Cost Per Ending Unit Inventory 780 4680 6 780 4680 780 0 # of Units Beginning inventory Purchases Oct-10 Oct-20 Oct-28 Totals 7901 800 8101 4. 3950 2400 3 3950 3200 4860 16690 790 8001 810) 7901 8000 810 0 8001 4860 5660 6 0 14 21 11030 Periodic : LIFO Goods Purchasd Cost of Goods Sold Inventory Balance Cost Per cost of Goods # of Units Cost Per Unit Available for sales sold Unit Cost of # of Goods Sold Units Cost Per Ending Unit Inventory 6 7801 46801 7800 780 4680 # of Units Beginning inventory Purchases Oct-101 Oct-201 Oct-28 Totals 5 7901 800 8101 3950 3200 4860 16690 790 8001 810 790 01 3160 3200 4860 11220 790 8001 8101 21 5470

Periodic : average Cost Goods Purchasd Cost of Goods Sold Inventory Balance Average Average Average Cost per cost of Goods # of Units Cost per Cost of # of Cost per Ending unit Available for sales sold unit Goods Sold Units unit Inventory # of Units 6 780 4680 Beginning inventory Purchases Oct-10 Oct-20 Oct-28 Totals 5 7901 8001 810) 21 794.76 3950 32001 4860 16690 14 794.76 11127 7 794.76 5563 Periodic: Specific Identification Goods Purchasd Cost of Goods Sold Inventory Balance Cost Per cost of Goods # of Units Cost Per Unit Available for sales sold Unit Cost of # of Goods Sold Units Cost Per Ending Unit Inventory 7801 4680 780 3900 780 780 # of Units Beginning inventory Purchases Oct-10 Oct-20 Oct-301 Totals 790 800 810 41 61 3950 3200 39501 3200 4860) 16690 790 800 810 7900 80010 810 4860 5640 6 11050

5640 11050 Answers Specific Identification Ending Inventory Cost of Goods sold First in First out Ending Inventory Cost of Goods sold Last in First Out Ending Inventory Cost of Goods sold Weighted Average Cost Ending Inventory Cost of Goods sold 5660 11030 5470 11220 5563 11127