Question

Grouper Corporation uses a perpetual inventory system. On November 19, the company sold 610 units. The following additional information is available: Units Unit Cost Total Cost Nov. 1 inventory 340 $12 $4,080 Nov. 15 purchase 440 16 7,040 Nov. 23 purchase 430 17 7,310 1,210 $18,430

Calculate the November 30 inventory and the November cost of goods sold, using the moving average cost formula. (Round unit cost to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places. e.g. 5,275.) Cost of Goods Sold $ Ending Inventory $

Calculate the November 30 inventory and the November cost of goods sold, using the FIFO cost formula. Cost of Goods Sold $ Ending Inventory $

Answer 1

Requirement (1) Perpetual record : Moving Average Cost Date Purchases Quantity Unit Cost Cost of goods sold Inventory on Hand Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 340 $ 12.00 $ 4,080.00 1-Nov 15-Nov 440 $ 16.00 $7,040.00 340 $ 12.00 $ 4,080.00 440 $ 16.00 $ 7,040.00 780 $ 14.26 $ 11, 120.00 19-Nov 610 $ 14.26 $ 8,696 170 $ 14.26 $ 2,424 23-Nov 430 $ 17.00 $7,310.00 170 $ 14.26 $ 2,424 430 $ 17.00 $ 7,310.00 610 $ 8,696 600 $ 9,734 Cost of goods sold Ending Inventory $ 8,696 $ 9,734 Requirement (2) Perpetual record : FIFO Purchases Quantity Unit Cost Date Cost of goods sold Inventory on Hand Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 340 $ 12 $ 4,080 1-Nov 15-Nov 440 $ 16 $7,040.00 340 $ 440 $ 12 $ 16 $ 4,080 7,040 19-Nov 170 $ 16 $ 2,720 340 $ 270 $ 12 $ 16 $ 4,080 4,320 23-Nov 430 $ 17 $7,310.00 170 $ 430 $ 16 $ 17 $ 2,720 7,310 610 $ 8,400 600 $ 10,030 Cost of goods sold Ending Inventory $ 8,400 $ 10,030

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