Question

Monty Corporation uses a perpetual inventory system. On November 19, the company sold 620 units. The following additional information is available:

		Units			Unit Cost			Total Cost
Nov. 1 inventory		320			$11			$3,520
Nov. 15 purchase		430			15			6,450
Nov. 23 purchase		410			18			7,380
		1,160						$17,350

Calculate the November 30 inventory and the November cost of goods sold, using the moving-average cost formula. (Round unit cost to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places. e.g. 5,275.)

Cost of Goods Sold		$	enter a dollar amount rounded to 0 decimal places
Ending Inventory		$	enter a dollar amount rounded to 0 decimal places

Calculate the November 30 inventory and the November cost of goods sold, using the FIFO cost formula.

Cost of Goods Sold		$	enter a dollar amount
Ending Inventory		$	enter a dollar amount

Answer 1

:: Moving Average Method - Perpetual Inventory system

>> Average cost on Nov 19th = [ $ 3,520 + $ 6,450 ] / ( 320 + 430 )

>> Average cost on Nov 19th = $ 13.29

>> Cost of Goods sold = 620 * $ 13.29

>> Cost of Goods sold = $ 8,240.

>> Ending Inventory = Cost of Goods available for sale - Cost of Goods sold

>> Ending Inventory = $ 17,350 - $ 8,240

>> Ending Inventory = $ 9,110.

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:: FIFO Method - Perpetual Inventory system

>> Cost of Goods sold = $ 3,520 + ( 300 * $ 15 )

>> Cost of Goods sold = $ 8,020

>> Ending Inventory = $ 17,350 - $ 8,020

>> Ending Inventory = $ 9,330