Question

Problem 6-9A (Part Level Submission) Bramble Corp. began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales. Purchases Units Sales Units $94 Date July 1 July 6 July 11 July 14 July 21 July 27 $100 $107 (a1) Calculate average cost for each unit. (For calculation and answers purpose round unit costs to 2 decimal places, e.g. 15.25.) July 1 $ July 6 पी July 11 पी July 14 पी July 21 पी July 27 पी

The ending inventory under a perpetual inventory system

FIFO :

MOVING-AVERANGE :

LIFO:

Answer 1

Solution Required 1: Calculate average cost for each unit July 1 July 6 July 11 July 14 July 21 July 27 $ $ $ $ $ s 94.00 94.00 97.75 97.75 103.92 103.92 Required 2 : Ending inventory under a perpetual inventory system using (1) FIFO (2) moving average, and (3) LIFO. MOVING- FIFO AVERAGE 428.00 $ 415.67 LIFO 389.00 The ending inventory under a perpetual inventory system $ $ First-in, first-out (FIFO) Method Date Purchases Quantity Unit Cost 11 $ 94.00 Cost of Goods sold Quantity Unit Cost Total cost Total cost $ 1,034.00 July 1 July 6 July 11 8 $ 94.00 $ 752.00 Inventory on Hand Quantity Unit Cost | Total cost 11 $ 94.00 $ 1,034.00 3 $ 94.00 $ 282.00 3 $ 94.00 $ 282.00 5 $ 100.00 $ 500.00 3 $ 100.00 $ 300.00 5 $ 100.00 $ 500.00 July 14 3 2 $ $ 94.00 100.00 $ $ 282.00 200.00 July 21 6 $ 107.00 $ 642.00 3 $ 6 $ 4 $ 100.00 $ 107.00 $ 107.00 $ 300.00 642.00 428.00 July 27 3 2 18 $ $ 100.00 $ 107.00 $ $ 300.00 214.00 1,748.00 1 Totals $ 2,176.00 $ 428.00 First-in, first-out (FIFO) Method Ending inventory cost of goods sold $ 428.00 $ 1,748.00

Moving - average Method Date Purchases Quantity Unit Cost Total cost 11 $ 94.00 $ 1,034.00 5 $ 100.00 $ 500.00 July 1 July 6 July 11 July 14 July 21 July 27 Totals Cost of Goods sold Inventory on Hand Quantity Unit Cost Total cost | Quantity Unit Cost | Total cost 11 $ 94.00 $ 1,034.00 8 $ 94.00 $ 752.00 3 $ 94.00 $ 282.00 8 $ 97.75 $ 782.00 5 $ 97.75 $ 488.75 3 $ 97.75 $ 293.25 9 $ 103.92 $ 935.25 5 $ 103.92 $ 519.58 4 $ 103.92 $ 415.67 181 | $ 1,760.33 IS 415.67 6 $ 107.00 $ 642.00 22 $ 2,176.00 41 Moving - average Method Ending inventory cost of goods sold $ 415.67 $ 1,760.33 Last-in, first-out (LIFO) Method Date Purchases Quantity Unit Cost Total cost 11 $ 94.00 $ 1,034.00 Cost of Goods sold Quantity Unit Cost Total cost July 1 July 6 July 11 8 $ 94.00 $ 752.00 5 $ 100.00 $ 500.00 Inventory on Hand Quantity Unit Cost | Total cost 11 $ 94.00 $ 1,034.00 3 $ 94.00 $ 282.00 3 $ 94.00 $ 282.00 5 $ 100.00 $ 500.00 3 $ 94.00 $ 282.00 3 $ 94.00 $ 282.00 6 $ 107.00 $ 642.00 3 $ 94.00 $ 282.00 1 $ 107.00 $ 107.00 | $ 389.00 5 $ 100.00 $ 500.00 July 14 July 21 6 $ 107.00 $ 642.00 July 27 5 $ 107.00 $ 535.00 | Totals $ 2,176.00 | $ 1,787.00 Last-in, first-out (LIFO) Method Ending inventory cost of goods sold $ 389.00 $ 1,787.00