Inventory Costing Methods-Perpetual Method Fortune Stores uses the perpetual inv

Question

Inventory Costing Methods-Perpetual Method Fortune Stores uses the perpetual inventory system for its merchandise inventory. The April 1 Inventory for one of the ltems in the merchandise inventory consisted of 120 units with a unit cost of $395. Transactions for this item during April were as follows: April 9 Purchased 40 units $415 per unit 14 Sold 80 units 620 per unit 23 Purchased 20 units@ 420 per unit 29 sold 40 units Required a. Calculate the cost of goods sold and the ending inventory cost for the month of April using the weighted-average cost method. Do not round until your final answers. Round your final answers to the nearest dollar. b. Calculate the cost of goods sold and the ending inventory cost for the month of April using the first- in, first-out method. c. Calculate the cost of goods sold and the ending inventory cost for the month of Aprit using the last-in first-out method. a. Weighted Average Ending inventory 24,240 Cost of goods Sold 48160

Explanation / Answer

Weighted Average Method Date Purchased Sold Balance In Inventory Average Cost Calculation Units Cost Total Units Cost Total Total Units Total Total /Total Units Avg Cost unit Apr-01 120 47400 47400/120 395 Apr-09 40 415 16600 160 64000 64000/160 400 Ap-14 80 400 32000 80 32000 32000/80 400 Apr-23 20 420 8400 100 40400 40400/100 404 Ap-29 40 404 16160 60 24240 24240/60 404 Total 48160 Inventory Value =$ 24240 COGS = $48160 FIFO Date Purchased Sold Balance In Inventory Units Cost Total Units Cost Total Total Units Cost Total Apr-01 120 395 47400 Apr-09 40 415 16600 120 395 47400 40 415 16600 Ap-14 80 395 31600 40 395 15800 40 415 16600 Apr-23 20 420 8400 40 395 15800 40 415 16600 20 420 8400 Ap-29 40 395 15800 40 415 16600 20 420 8400 Total 47400 25000 Inventory Value =$ 25000 COGS = $47400 LIFO Date Purchased Sold Balance In Inventory Units Cost Total Units Cost Total Total Units Cost Total Apr-01 120 395 47400 Apr-09 40 415 16600 120 395 47400 40 415 16600 Ap-14 40 415 16600 80 395 31600 40 395 15800 Apr-23 20 420 8400 80 395 31600 20 420 8400 Ap-29 20 395 7900 60 395 23700 20 420 8400 Total 48700 23700 Inventory Value =$ 23700 COGS = $48700

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