Question

Practice Test 1) Using the information given below for a company that uses a perpetual inventory system, calculate the ending inventory using weighted average. Units 100 40 Unit Cost S10 2 Beginning inventory Uan. 5 purchased Jan. 10 sold Jan. 15 purchased Jan. 25 sold 60 SO Cost of goods sold Units Unit cost Total Units Balance Unit cost Total Answer: Purchases Date Units Unit cost Total 1/1 1/5 11/10 1/15 1/25 2) Calculate the ending inventory using LIFO for a company that uses a perpetual inventory system, using the information given below. Units 100 Unit Cost $10 40 Beginning inventory Aug. 5 purchase Aug. 10 sale Aug. 15 purchase Aug. 25 sale 60 50 Answer: Purchases Cost of goods sold Unit cost Total Units Unit cost Total Units Units Balance Unit cost Total Date 8/1 8/5 TT 8/10 8/15

Answer 1

Ansuero- 0 Perpetual- weighted average melted :- Purchases | Units Unit Cost cost of goods sold Units Chit cost tored Balance Units Unit cost 100 $ 10 Total $lepo Total Date Jan I 100000 uso / Jan 5 | 40 $12 LOO 40 $480 12 10057 taupo 1480 140 80 634. 2 160 057 10.57 su58 Jan lo Jan is 70 13 910 80 to 150 100 10.57 13 11.70 1170 84508 910 1755.8 11708 0 11oto 585 Jan 25 . Ending inventay $1170.8 = =

Perpetual- Lito melhod Balance cost of goods sold 1 Units Unit cost Purchajes Unit Unt Cost Toked Date Ont cost to feel Total Units Unit cost Total 1001101000 (000 460 Aug 1 Augs no $12 $480 uso 800 1 40 12 200 20 Aug 10 20 800 Aug 15 to B 910 70 80 20 1 10 13 960 800 260 7 50 3 650 Augas 100 lobo Total .: Ending inventory = $ 1060. Perpetual- FIFO method :- Balance Cost of goody sold Purchases Units Unitlust Units Total 1 Dale Total Total | Untcost Chits ont cost May I 1 150 $0 $1500 mays 220 $12 $2640 750 $10 1500 220 12 2640 * may 10 140 10 14001010 100 2640 may 15 100 B 1300 100 12 2640 13 1300 10 10 100 80 12 960 140 12 1680 100 13 1300 140 2460 Total may 24 cost- of goods solda $ 2460