Question

# Monty Corporation uses a perpetual inventory system. On November 19, the company sold 620 units. The...

Monty Corporation uses a perpetual inventory system. On November 19, the company sold 620 units. The following additional information is available:
Units Unit Total Cost Cost Nov. 1 inventory Nov. 15 purchase 320 \$11 \$3,520 430 15 6,450 410 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 Ending Inventory \$ enter a dollar amount rounded to 0 decimal places \$ 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 Ending Inventory \$ enter a dollar amount \$ enter a dollar amount

:: 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

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