Question

The following information relates to the inventory flow of Ruby’s garden supplies:

2 March – beginning inventory is 5 trees @ $45 each

4 March – purchased 4 trees @ $58 each

6 March – sold 4 trees

7 March – purchased 2 trees @ $44 each

10 March – sold 5 trees

13 March – sold 1 tree

Required:

1. Assuming a perpetual inventory system, use the FIFO inventory costing method to calculate the cost of the goods sold at each sale (3 dates).
2. Assuming a periodic inventory system, use the weighted average inventory costing method to calculate the cost of the goods sold as a total at the end of the period.

Answer 1