Question

Ontario Skateboard Company has the following inventory and purchases during the fiscal year ended December 31, 2020. Beginning Inventory March 10 purchased March 20 sold May 13 purchased August 5 purchased September 10 sold 271 units @ $ 81/unit 204 units @ $ 85/unit 379 units @ $ 174/unit 288 units @ $ 77/unit 237 units @ $ 67/unit 469 units @ $ 174/unit Ontario Skateboard Company employs a perpetual inventory system. Required: 1. Calculate the dollar value of ending inventory and cost of goods sold using: (Do not round intermediate calculations. Round the final answers to 2 decimal places. Round weighted average all unit costs to two decimal places.) Ending Inventory Cost of Goods Sold a. FIFO b. Moving weighted average 2. Using your calculations from Part 1, complete the following schedule: (Do not round intermediate calculations. Round the final answers to 2 decimal places. Round weighted average all unit costs to two decimal places.) FIFO Moving Weighted Average Sales Cost of goods sold Gross profit

Answer 1

Ontario Skateboard Company FIFO Perpetual Purchases Per unit cost Total Cost Units Date Beg. Inv. Mar-10 81 Balance Per unit cost Total Cost 21951 21951 17340 8160 204 85 Cost of goods sold Units Per unit cost Total Cost Units 271 271 204 271 21951 96 108 85 9180 17340 Mar-20 May-13 288 77 22176 Aug-05 237 15879 96 8160 22176 8160 22176 15879 10184 288 237 Sep-10 96 85 152 8160 22176 5695 67 Dec-31 67 10184 Purchases 55395 COGS 67162 Ending 10184 Moving Weighted Average Purchases Date Units Per unit cost Total Cost Beg. Inv. Mar-10204 85 17340 Cost of goods sold Units Per unit cost Total Cost Units 271 271 204 475 379 82.72 31350 9 6 96 288 384 Mar-20 May-13 288 77 22176 Balance Per unit cost Total Cost 81 21951 81 21951 85 17340 82.72 39291 82.72 7941 82.72 7941 77 22176 78.43 30117 78.43 30117 67 15879 74.07 45996 74.07 11258 74 11258 Aug-05 237 67 15879 384 237 621 152 152 469 74.07 34738 Sep-10 Dec-31 Purchases 55395 COGS 66088 Ending 11258

Sales FIFO Date Mar-20 Sep-10 Units 379 Selling price 174 174 469 Sales 65946 81606 147552 -67162 80390 Less: COGS Gross Profit Sales Moving Weighted Average Date Jan-00 Sep-10 Units Selling price Sales 379 174 65946 469 174 81606 147552 Less: COGS -66088 Gross Profit 81464.26