Question

Brief Exercise 6-10 Marigold Corp. uses a perpetual inventory system. Data for product E2-D2 include the following purchases. Date Number of Units Unit Price $8 May 7 July 28 15 On June 1, Marigold sold 39 units, and on August 27, 60 more units. Your answer is partially correct. Try again. Prepare the perpetual inventory schedule for the above transactions using FIFO. (Round answers to o decimal places, e.g. 1,250.) Product E2-D2 Purchases Cost of Goods Sold Date Balance May 7 J 600 May? I sunet J 2 509 200 July 28 LINK TO TEXT Your answer is partially correct. Try again. Prepare the perpetual inventory schedule for the above transactions using LIFO. (Round answers to o decimal places, e.g. 1,250.) Product E2-D2 Purchases Cost of Goods Sold Date Balance May 7 May? 12 2009 Aug. 27 LINK TO TEXT

Answer 1

1. FIFO:

Date	Purchases	Cost of Goods Sold	Balance
May 7)	$600 (75*$8)	$0	$600
June 1		$312	$288
July 28	$675 (45*15)	$0	$963 (288+675)
Aug 27	$0	$648 (288 + 24*15)	$315

2. LIFO:

Date	Purchases	Cost of Goods Sold	Balance
May 7)	$600 (75*$8)	$0	$600
June 1		$312	$288
July 28	$675 (45*15)	$0	$963 (288+675)
Aug 27	$0	$795 (675 + 15*8)	$168

3. Moving Average

Date	Purchases	Cost of Goods Sold	Balance
May 7)	$600 (75*$8)	$0	$600
June 1		$312	$288
July 28	$675 (45*15)	$0	$963 (288+675)
Aug 27	$0	$713 (60 * 963/81)	$250