Price/ Quantity Cost Transaction Date Jan. Feb. 4 Purchase Feb. 20 Sale Apr. 2 P

Question

Price/ Quantity Cost Transaction Date Jan. Feb. 4 Purchase Feb. 20 Sale Apr. 2 Purchase Nov. 4 Sale Deginning inventory 1,300 15 16 31 25 36 2,110 2,500 3,060 2,400 Calculate cost of goods sold, assuming Sarasota uses a periodic inventory system and FiFO cost formula Cost of goods sold $ LINK TO TEXT LINK TO TEXT Calculate cost of goods sold, assuming Sarasota uses a periodic inventory system and weighted average cost formula. (Round weighted average cost per unit to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.) Cost of goods sold s LINK TO TEXT LINK TO TEXT Calculate cost of goods sold, assuming Sarasota uses a perpetual inventory system and moving-average cost formula. (Round weighted average cost per unit to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.) Cost of goods sold S

Explanation / Answer

Answer 1.

Cost of Goods available for sale = 1,300 * $15 + 2,110 * $16 + 3,060 * $25
Cost of Goods available for sale = $129,760

Number of units available for sale = 1,300 + 2,110 + 3,060
Number of units available for sale = 6,470

Number of units sold = 2,500 + 2,400
Number of units sold = 4,900

Cost of Goods sold = 1,300 * $15 + 2,110 * $16 + 1,490 * $25
Cost of Goods sold = $90,510

Answer 2.

Cost of Goods available for sale = 1,300 * $15 + 2,110 * $16 + 3,060 * $25
Cost of Goods available for sale = $129,760

Number of units available for sale = 1,300 + 2,110 + 3,060
Number of units available for sale = 6,470

Cost per unit = Cost of Goods available for sale / Number of units available for sale
Cost per unit = $129,760 / 6,470
Cost per unit = $20.06

Cost of Goods sold = 4,900 * $20.06
Cost of Goods sold = $98,294

Answer 3.

February 20:

Cost of Goods available for sale = 1,300 * $15 + 2,110 * $16
Cost of Goods available for sale = $53,260

Number of units available for sale = 1,300 + 2,110
Number of units available for sale = 3,410

Cost per unit = Cost of Goods available for sale / Number of units available for sale
Cost per unit = $53,260 / 3,410
Cost per unit = $15.62

Cost of Goods sold = 2,500 * $15.62
Cost of Goods sold = $39,050

November 4:

Cost of Goods available for sale = 910 * $15.62 + 3,060 * $25
Cost of Goods available for sale = $90,714.20

Number of units available for sale = 910 + 3,060
Number of units available for sale = 3,970

Cost per unit = Cost of Goods available for sale / Number of units available for sale
Cost per unit = $90,714.20 / 3,970
Cost per unit = $22.85

Cost of Goods sold = 2,400 * $22.85
Cost of Goods sold = $54,840

Total Cost of Goods Sold = $39,050 + $54,840
Total Cost of Goods Sold = $93,890

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