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# Problem 6-1A Calculate ending inventory and cost of goods sold for four inventory methods (LO6-3) [The...

Problem 6-1A Calculate ending inventory and cost of goods sold for four inventory methods (LO6-3)

[The following information applies to the questions displayed below.]

Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.

 Date Transactions Units Unit Cost Total Cost October 1 Beginning inventory 6 \$ 880 \$ 5,280 October 4 Sale 4 October 10 Purchase 5 890 4,450 October 13 Sale 3 October 20 Purchase 4 900 3,600 October 28 Sale 7 October 30 Purchase 8 910 7,280 \$ 20,610

1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.

2. Using FIFO, calculate ending inventory and cost of goods sold at October 31.

4. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31. (Round your intermediate and final answers to 2 decimal places.)

 Specific identification FIFO Weighted Average Cost of Goods Sold \$    12,450.00 \$ 12,430 \$ 12,545 Ending Inventory \$       8,160.00 \$ 8,180 \$ 8,065

Working:

 Cost of Goods Available for sale Units Cost per unit value Beginning Inventory 6 \$                      880.00 \$                   5,280.00 Purchases 10-Oct 5 \$                      890.00 \$                   4,450.00 20-Oct 4 \$                      900.00 \$                   3,600.00 30-Oct 8 \$                      910.00 \$                   7,280.00 Total 23 \$                 20,610.00
 Specific Identifications Date Goods Available for sale Cost of Goods Sold Ending Inventory Balance # of Units Cost Per Unit Cost of Goods Available for sale # of Units Sold Cost per Unit Cost of Goods Sold # of Units Cost per Unit Inventory Balance Beginning Inventory 6 \$ 880.00 \$         5,280.00 5 \$ 880.00 \$      4,400.00 1 \$ 880.00 \$          880.00 Purchases 10-Oct 5 \$ 890.00 \$         4,450.00 5 \$ 890.00 \$      4,450.00 0 \$ 890.00 \$                    - 20-Oct 4 \$ 900.00 \$         3,600.00 4 \$ 900.00 \$      3,600.00 0 \$ 900.00 - 30-Oct 8 \$ 910.00 \$         7,280.00 0 \$ 910.00 \$                   - 8 \$ 910.00 \$       7,280.00 Totals 23 \$       20,610.00 14 \$    12,450.00 9 \$       8,160.00
 FIFO A Total Units Available for sale 23 \$          20,610.00 Units Sold 14 Ending Inventory Units 9 Valuation Cost of Goods Sold 6 \$                       880.00 \$            5,280.00 5 \$                       890.00 \$            4,450.00 3 \$                       900.00 \$            2,700.00 \$                         - \$                         - \$                         - B Cost of Goods Sold 14 units \$          12,430.00 A-B Ending Inventory 9 units \$            8,180.00
 Weighted Average Cost Per unit Units (A) 23 Total Cost (B) \$                20,610.00 Average Cost (C=B/A) \$                      896.09
 Weighted Average A Total Units Available for sale 23 \$          20,610.00 Units Sold 14 Ending Inventory Units 9 Valuation Cost of Goods Sold 14 \$                       896.09 \$          12,545.22 \$                         - B Cost of Goods Sold 14 units \$          12,545.22 A-B Ending Inventory 9 units \$            8,064.78

Thanks.

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