Question

Note I posted question before one hour but the answer not right please answer the question in correct way with tables: the subject is fininicial accounting

Q2 /

North Hills, Inc. sells an Xpert snowshoe that is popular with snowshoe enthusiasts. The following information shows North Hills’s purchases and sales of Xpert snowshoes during January:

Date			Explanation		Units			Unit Cost			Unit Sales Price
Jan.	1		Beginning inventory		33			$299
	7		Purchases		24			304
	14		Sales		(38	)					$492
	19		Purchases		44			309
	22		Sales		(48	)					503
	25		Purchases		34			314
					49

(a)

Determine the cost of goods sold and ending inventory using (1) FIFO and (2) average cost, assuming North Hills uses a perpetual inventory system. (Round FIFO answers to the nearest whole dollar, e.g. 5,275 and Average cost answers to 2 decimal places, e.g. 15.25.)

	FIFO		Average
Cost of goods sold	$		$
Ending inventory	$		$

Answer 1

a.

	FIFO	Average
cost of goods sold	26,124	26,159.71
ending inventory	15,311	15,275.29

working:

FIFO.

cost of goods sold = (33 units*299) +(24 units *304) + (29 units*309)

=>26,124.

ending inventory = (15 units * 309) + (34 units*314)

=>15,311.

average cost;

average cost per unit sold on jan 14 = (33 units *299) + (24 units *304) / (33+24)

=>301.11.

cost of goods sold on jan 14 = (301.105263*38)=>$11,442.

average cost per unit sold on jan 22:

=> (44*309 + 19 units remaining previously * $301.105263) / (44+19)

=>$306.619048.

cost of goods sold on jan 22 =>48 *306.619048

=>$14,717.71.

total cost of goods sold = $14,717.71+11,442

=>$26,159.71.

cost of ending inventory:

=> (15 units remaining previously*$306.619048) + (34*314)

=>4599.28572+10,676.

=>$15,275.29