Inventory Costing Methods-Perpetual Method Merritt Company uses the perpetual in

Question

Inventory Costing Methods-Perpetual Method
Merritt Company uses the perpetual inventory system. The following May data are for an item in Merritt's inventory:

Calculate the cost of goods sold for the May 16 sale using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Round your final answers to the nearest dollar.

May 1 Beginning inventory 150 units @ $30 per unit 12 Purchased 100 units @ $35 per unit 16 Sold 180 units. 24 Purchased 170 units @ $38 per unit

Explanation / Answer

a Cost of Goods Sold 5550 =(150*30)+(30*35) b Cost of Goods Sold 5900 =(100*35)+(80*30) c Average cost=((150*30)+(100*35))/250= $32 Cost of Goods Sold 5760 =180*32

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