Question

Marigold Inc. uses a perpetual inventory system. Its records show the following for the month of May. Unit Total Date Explanation Units Cost Cost May 1 Inventory 29 $9 $261 May 15 Purchase 24 10 240 May 18 Sale (49) May 24 Purchase 38 11 418 Total 42 $919 42 $919 Your answer is correct. Calculate the cost of goods sold for May and the ending inventory at May 31 using the FIFO formula. Cost of goods sold $ 461 Ending Inventory $ 458 eTextbook and Media Attempts: 1 of 2 used (b) Calculate the cost of goods sold for May and the ending inventory at May 31 using the average cost formula. (For average, use 3 decimal places, e.g. 15.235 in your calculations and round final answers to 2 decimal places, e.g 5.25.) Cost of goods sold $ Ending Inventory $ e Textbook and Media Attempts: 0 of 2 used Save for Later Submit Answer

Question B, please.

Answer 1

Perpetual Average Cost Ending Inventory Unit Cost Total Cost Goods Purchsed Cost of Goods sold Unit Cost Total Cost units Unit Cost Total Cost Date units units May-01 Beginning inventory May-15 Purchase 29 9.000 261.00 240 261.00 24 10 29 9.000 10.000 24 240.00 9.453 53 501.00 May-18 Sales May-24 Purchase 9.453 49 463.20 9.453 37.81 37.81 38 11 418 9.453 38 11.000 418.00 455.81 42 10.853 Totals 463.20 49 42 455.80 Cost of goods sold Ending inventory 463.20 455.80