Question

SOCO Case Defence sells smartphone cases and uses the perpetual inventory system. The following is information on sales of Defender Box" cases. On October 1, Case Defence had 35 units with a unit cost of $29. Sales Units Unit Price Oct. 3e $65 Purchases Date Units Unit Cost Oct. 3 25 30 6 Oct. 12 35 32 Oct. 19 Oct. 23 45 34 Oct. 30 Oct. 31 35 35 $65 40 $65 30 Required: 1. Calculate the dollar value of cost of goods sold and ending inventory for the month of October using the follow round intermediate calculations. Round weighted average all unit costs to two decimal places and round all on nearest dollar.) Ending Inventory Cost of Goods Sold a FIFO b. Moving weighted average 2. Using your calculations in Part 1 complete the following table: (Do not round Intermediate calculations. Round nearest dollar Prey, 1 of 1 Next B O Пр)

Answer 1

Amount Amount a. FIFO Particulars Sales: Oct 6 (30*65) Oct 19(35*65) Oct 30(40*65) 1950 2275 2600 6825 870 145 Less: cost of goods sold Oct 6(30*29) Oct 19(5*29) (25*30) (5*32) Oct 30(30*32) (10*34) 750 160 960 340 3225 Gross profit 3600

Ending Inventory Amount Amount 1190 (35*34) (30*35) 1050 2240

b. Moving Weighted Average Amount Amount Particulars Sales: Oct 6 (30*65) Oct 19(35*65) Oct 30(40*65) 1950 2275 2600 6825 Less: cost of goods sold Oct 6(30*29.42) Oct 19(30*30.81) Oct 30(40*32.72) 882.6 924.3 1308.8 3115.7 Gross profit 3709

Amount Ending Inventory (65*33.77) 2195.05

1

Particulars a. FIFO b. Moving weighted average Ending Inventory Cost of goods sold 2240 3225 2195 3116

2

Moving weighted average Particulars FIFO 6825 6825 Sales Cost of Goods sold Gross profit 3225 3116 3600 3709

3a   Moving weighted average

3b FIFO

4

Gross Profit Percentage Particulars 1. FIFO 2. Moving weighted average 53 54