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e https//newconnect.mheducation.com/flow/connect.html Help You received partial credit in the previous attempt Check my work Problem 6-4AA Perlodic: Alternative cost flows LO P3 Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Date ts Sold at Jan. 1 Beginning inventory610 units@$40.00 per unit Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Units Acquired at Cost 405 units@ $37.00 per unit 205 units@ $22.00 per unit 110 units $45.00 per unit 510 units $41.00 per unit 805 units @ $70.00 per unit 620 unitse $70.00 per unit Totals 1,840 units 1, 425 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. Cost of goods available for sale 69.755 1,840 units Prey 1 of 1Explanation / Answer
Computation of No of units and Cost of Goods available for sale
Receipts
Date
Description
Qty
Rate
Amount
1-Jan
Beg Inventory
610
$ 40.00
$ 24,400.00
10-Feb
Purchases
405
$ 37.00
$ 14,985.00
13-Mar
Purchases
205
$ 22.00
$ 4,510.00
21-Aug
Purchases
110
$ 45.00
$ 4,950.00
5-Sep
Purchases
510
$ 41.00
$ 20,910.00
Cost of Goods Available for Sale
1,840
$ 69,755.00
Cost of Goods available for sale
$ 69,755.00
No of Units available for sale
1,840
FIFO
Receipts
Issue
Balance
Date
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1-Jan
Beg Inventory
610
$ 40.00
$ 24,400.00
10-Feb
Purchases
405
$ 37.00
$ 14,985.00
13-Mar
Purchases
205
$ 22.00
$ 4,510.00
21-Aug
Purchases
110
$ 45.00
$ 4,950.00
5-Sep
Purchases
510
$ 41.00
$ 20,910.00
Cost of Goods Avaialable for Sale
1,840
$ 69,755.00
15-Mar
Sales
610
$ 40.00
$ 24,400.00
195
$ 37.00
$ 7,215.00
10-Sep
Sales
210
$ 37.00
$ 7,770.00
205
$ 22.00
$ 4,510.00
110
$ 45.00
$ 4,950.00
95
$ 41.00
$ 3,895.00
415
$ 41.00
$ 17,015.00
Total
1,840
$ 69,755.00
1425
$ 52,740.00
415
$ 17,015.00
LIFO
Receipts
Issue
Balance
Date
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1-Jan
Beg Inventory
610
$ 40.00
$ 24,400.00
10-Feb
Purchases
405
$ 37.00
$ 14,985.00
13-Mar
Purchases
205
$ 22.00
$ 4,510.00
21-Aug
Purchases
110
$ 45.00
$ 4,950.00
5-Sep
Purchases
510
$ 41.00
$ 20,910.00
Cost of Goods Avaialable for Sale
1,840
$ 69,755.00
15-Mar
Sales
510
$ 41.00
$ 20,910.00
110
$ 45.00
$ 4,950.00
185
$ 22.00
$ 4,070.00
10-Sep
Sales
20
$ 22.00
$ 440.00
405
$ 37.00
$ 14,985.00
195
$ 40.00
$ 7,800.00
415
$ 40.00
$ 16,600.00
Total
1,840
$ 69,755.00
1425
$ 53,155.00
415
$ 16,600.00
Weighted Average
Receipts
Issue
Balance
Date
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1-Jan
Beg Inventory
610
$ 40.00
$ 24,400.00
10-Feb
Purchases
405
$ 37.00
$ 14,985.00
13-Mar
Purchases
205
$ 22.00
$ 4,510.00
21-Aug
Purchases
110
$ 45.00
$ 4,950.00
5-Sep
Purchases
510
$ 41.00
$ 20,910.00
Cost of Goods Avaialable for Sale
1,840
37.91033
$ 69,755.00
15-Mar
Sales
805
$ 37.91
$ 30,517.81
10-Sep
Sales
620
$ 37.91
$ 23,504.40
415
$ 37.91
$ 15,732.79
Total
1,840
$ 69,755.00
1425
$ 54,022.21
415
$ 15,732.79
Ending Inventory
a)
FIFO
$ 17,015.00
b)
LIFO
$ 16,600.00
c)
Weighted Average Method
$ 15,732.79
d)
Specific Identification
Data not given
Date
Description
Units
Rate
Amount
15-Mar
Sales
805
$ 70.00
$ 56,350.00
10-Sep
Sales
620
$ 70.00
$ 43,400.00
Total Sales
1,425
$ 99,750.00
FIFO
LIFO
Weighed average
Specific Identification
Sales
$ 99,750.00
$ 99,750.00
$ 99,750.00
$ 99,750.00
Less: Cost of Goods Sold
$ 52,740.00
$ 53,155.00
$ 54,022.21
Data not given
Gross Profit
$ 47,010.00
$ 46,595.00
$ 45,727.79
Computation of No of units and Cost of Goods available for sale
Receipts
Date
Description
Qty
Rate
Amount
1-Jan
Beg Inventory
610
$ 40.00
$ 24,400.00
10-Feb
Purchases
405
$ 37.00
$ 14,985.00
13-Mar
Purchases
205
$ 22.00
$ 4,510.00
21-Aug
Purchases
110
$ 45.00
$ 4,950.00
5-Sep
Purchases
510
$ 41.00
$ 20,910.00
Cost of Goods Available for Sale
1,840
$ 69,755.00
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