E Menu QUESTION 5 Incorrect 000 points out of 400 Flag quest

E Menu QUESTION 5 Incorrect 0.00 points out of 4.00 Flag questicn Inventory Costing Methods-Perpetual Method Fortune Stores uses the perpetual Inventory system for its merchandise Inventory. The April 1 inventory for one of the items in the merchandise Inventory consisted of 120 units with a unit cost of $395. Transactions for this term during April were as follows Finish April 9 Purchased 40 units $415 per unit 14 Sold 23 Purchased 20 units @ 420 per unit 29 Sold 80 units 620 per unit 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 April using the last-in, first-out method a. Weighted Average nding inventory23040x

Solution

a)

WEIGHTED AVERAGE COST METHOD

Opening Inventory

Purchase Inventory

Cost of Goods sold

Ending Inventory

Date

Qty

Price

Total

Qty

Price

Total

Qty

Price

Total

Qty

Price

Total

Apr-01

120

395

47400

120

395

47400

Apr-09

40

415

16600

160

400

64000

Apr-14

80

400

32000

80

400

32000

Apr-23

20

420

8400

100

404

40400

Apr-29

40

404

16160

60

404

24240

TOTAL

47400

25000

48160

24240

Inventory on Hand =

24240

Cost of goods sold =

48160

b)

FIFO METHOD

Opening Inventory

Purchase Inventory

Sale Inventory

Ending Inventory

Date

Qty

Price

Total

Qty

Price

Total

Qty

Price

Total

Qty

Price

Total

Apr-01

120

395

47400

120

395

47400

Apr-09

40

415

16600

120

395

47400

40

415

16600

Apr-14

80

395

31600

40

395

15800

40

415

16600

Apr-23

20

420

8400

40

395

15800

40

415

16600

20

420

8400

Apr-29

40

395

15800

40

415

16600

20

420

8400

TOTAL

47400

25000

47400

25000

Inventory on Hand =

25000

Cost of goods sold =

47400

c)

LIFO METHOD

Opening Inventory

Purchase Inventory

Sale Inventory

Ending Inventory

Date

Qty

Price

Total

Qty

Price

Total

Qty

Price

Total

Qty

Price

Total

Apr-01

120

395

47400

120

395

47400

Apr-09

40

415

16600

120

395

47400

40

415

16600

Apr-14

40

415

16600

80

395

31600

40

395

15800

Apr-23

20

420

8400

80

395

31600

20

420

8400

Apr-29

40

395

15800

40

395

15800

20

420

8400

TOTAL

47400

25000

48200

24200

Inventory on Hand =

24200

Cost of goods sold =

48200

a)
WEIGHTED AVERAGE COST METHOD
	Opening Inventory		Purchase Inventory		Cost of Goods sold		Ending Inventory
Date	Qty	Price	Total		Qty	Price	Total		Qty	Price	Total		Qty	Price	Total
Apr-01	120	395	47400										120	395	47400
Apr-09					40	415	16600						160	400	64000
Apr-14									80	400	32000		80	400	32000
Apr-23					20	420	8400						100	404	40400
Apr-29									40	404	16160		60	404	24240
TOTAL			47400				25000				48160				24240
Inventory on Hand =	24240
Cost of goods sold =	48160
b)
FIFO METHOD
	Opening Inventory		Purchase Inventory		Sale Inventory		Ending Inventory
Date	Qty	Price	Total		Qty	Price	Total		Qty	Price	Total		Qty	Price	Total
Apr-01	120	395	47400										120	395	47400
Apr-09					40	415	16600						120	395	47400
													40	415	16600
Apr-14									80	395	31600		40	395	15800
													40	415	16600
Apr-23					20	420	8400						40	395	15800
													40	415	16600
													20	420	8400
Apr-29									40	395	15800		40	415	16600
													20	420	8400
TOTAL			47400				25000				47400				25000
Inventory on Hand =	25000
Cost of goods sold =	47400
c)
LIFO METHOD
	Opening Inventory		Purchase Inventory		Sale Inventory		Ending Inventory
Date	Qty	Price	Total		Qty	Price	Total		Qty	Price	Total		Qty	Price	Total
Apr-01	120	395	47400										120	395	47400
Apr-09					40	415	16600						120	395	47400
													40	415	16600
Apr-14									40	415	16600		80	395	31600
									40	395	15800
Apr-23					20	420	8400						80	395	31600
													20	420	8400
Apr-29									40	395	15800		40	395	15800
													20	420	8400
TOTAL			47400				25000				48200				24200
Inventory on Hand =	24200
Cost of goods sold =	48200