Question

Thesale price of each putter is 125 Company records indicate the following for a particulier in d Putter's Choice Carries an inventory of putters and other gold u Cack the icon to view the records Read the r ements er's Choice's puters Requirement 1. Prepare Puter's Choice's perpetual inventory record for the puters assuming Puter's Choice uses the weighted average inventory costing method. Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar Thenderit the cost of ending hventory and cost of goods sold for the month Start by entering the beginning inventory balances Enter the transactions in chronological order, calculating new entry on hand balances for each transaction Once of the a ctions have been entered to the perpetual record, calculate the quantity and total cost of inventory purchased sold and on hand at the end of the period Costos Sold Inventory on Hand © Data Table Cost Quantity Cost Cost Quantity em Quantity Unit Cost • Purchase 12 75 Enter any number in the end and then click Check Answer 14 remaining

Answer 1

SOLUTION : 1
	FIFO - PERPETUAL METHOD
			PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
	Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
	Sept, 01	Beginning inventory							8	$         72.00	$576
	Sept, 06	Sales				2	$             72.00	$144	6	$         72.00	$432
	Sept, 08	Purchases	12	$             75.00	$900				6	$         72.00	$432
									12	$         75.00	$900
	Sept, 17	Sales				6	$             72.00	$432
						6	$             75.00	$450	6	$         75.00	$450
	Jan, 30	Purchases				3	$             75.00	$225	3	$         75.00	$225
			12		$900	17		$1,251	3		$225
SOLUTION : 2
	LIFO - PERPETUAL METHOD
			PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
	Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
	Sept, 01	Beginning inventory							8	$         72.00	$576
	Sept, 06	Sales				2	$             72.00	$144	6	$         72.00	$432
	Sept, 08	Purchases	12	$             75.00	$900				6	$         72.00	$432
									12	$         75.00	$900
	Sept, 17	Sales				12	$             75.00	$900	6	$         72.00	$432
	Jan, 30	Purchases				3	$             72.00	$216	3	$         72.00	$216
			12		$900	17		$1,260	3		$216
SOLUTION : 3
	WEIGHTED AVERAGE METHOD
			PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
	Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
	Sept, 01	Beginning inventory							8	$         72.00	$576
	Sept, 06	Sales				2	$             72.00	$144	6	$         72.00	$432
	Sept, 08	Purchases	12	$             75.00	$900				18	$         74.00	$1,332
	Sept, 17	Sales				12	$             74.00	$888	6	$         74.00	$444
	Jan, 30	Purchases				3	$             74.00	$222	3	$         74.00	$222
			12		$900	17		$1,254	3		$222
SOLUTION = 4
			FIFO	LIFO	WEIGH. AVG METHOD
		Cost of Goods Sold	$1,251	$1,260	$1,254
SOLUTION = 5		CALCULATION OF GROSS PROFIT
		Sales Revenue (17 Units X $ 126)	$2,142	$2,142	$2,142
		Less : Cost of Good Sold	$1,251	$1,260	$1,254
		Gross Profit	$891	$882	$888
SOLUTION = 6
		For Maximise gross profit FIFO method will be used