The following data are available for one of the products sold by Dahlia Company,

Question

The following data are available for one of the products sold by Dahlia Company, which uses a perpetual inventory system:

Mar. 1 Beginning inventory, 500 units at $4.00 each

7 Purchased 2,000 units at $5.00 each

12 Sold 2,300 units

17 Purchased 1,800 units at $6.00 each

27 Sold 1,900 units

1. Calculate cost of goods sold for March and the dollar amount of ending inventory on March 31 assuming FIFO is used.

2. Calculate cost of goods sold for March and the dollar amount of ending inventory on March 31 assuming LIFO is used.

3. Calculate cost of goods sold for March and the dollar amount of ending inventory on March 31 assuming average cost is used. (Round average cost per unit to two decimal places. Round other amounts to the nearest dollar.)

Explanation / Answer

Answer:-1)-

2)-

3)-

FIFO Method Goods purchased Cost of goods sold Inventory balance Date # of units Cost per unit # of units sold Cost per unit Cost of goods sold # of units Cost per unit Inventory balance Mar-01 500 4 2000 Mar-07 2000 5 500 4 2000 2000 5 10000 Mar-12 500 4 2000 200 5 1000 1800 5 9000 Mar-17 1800 6 200 5.00 1000.00 1800 6.00 10800.00 Mar-27 200 5 1000 100 6 600.00 1700 6 10200 Totals 4200 22200

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