Inventory Costing Methods—Perpetual Method The Luann Company uses the perpetual inventory system. The following July data...

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Inventory Costing Methods—Perpetual Method The Luann Company uses the perpetual inventory system. The following July data...

Inventory Costing Methods—Perpetual Method

The Luann Company uses the perpetual inventory system. The following July data are for an item in Luann’s inventory:

July	1	Beginning inventory	30	Units@	$9	per unit
	10	Purchased	50	Units@	$11	per unit
	15	sold	60	Units
	26	Purchased	25	Units@	$13	per unit

Calculate the cost of goods sold for the July 15 sale using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.

Round your final answers to the nearest dollar. For weighted-average cost, do not round the weighted-average unit cost.

A.	First-in, First-out:
	cost of goods sold:	$ ?
B.	Last-in, first-out:
	Cost of goods sold:	$ ?
C.	weighted-Avarge cost:
	Cost of goods sold:	$ ?

business accounting

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Answer 1

Answer #1

a) First in first out

Cost of goods sold = (30*9+30*11) = 600

b) Last in first out

Cost of goods sold = (50*11+10*9) = 640

c) Weighted average cost

Cost of goods sold = 820/80*60 = 615

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Answer 2

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Inventory Costing Methods—Perpetual Method The Luann Company uses the perpetual inventory system. The following July data...

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