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10 September, 00:00

Calculate ending inventory and cost of goods sold for four inventory methods. 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 $760 $4,560

October 4 Sale 4

October 10 Purchase 5 770 3,850

October 13 Sale 3

October 20 Purchase 4 780 3,120

October 28 Sale 7

October 30 Purchase 8 790 6,320

$17,850

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  1. 10 September, 03:44
    0
    Date Transactions Units Unit Cost Total Cost

    October 1 Beginning inventory 6 $760 $4,560

    October 4 Sale 4

    2 $ 760 1520

    October 10 Purchase 5 770 3,850

    7 $ 767.14

    October 13 Sale 3

    4 767.14 3068.57

    October 20 Purchase 4 780 3,120

    October 28 Sale 7

    1 773.57

    October 30 Purchase 8 790 6,320

    9 788.19 7093.57

    Inventory Units 23 $17,850

    Ending Units = 23 - 14 = 9 units

    FIFO Ending Inventory = $ 7100

    8 units at $790 = $ 632 0

    1 unit at $780 = $ 780

    LIFO Ending Inventory = 6870

    6 units at $760 = $ 4560

    3 units at $770 = $ 2310

    Gross Profit Inventory = $ 17850/23 * 9 = $ 6985

    Moving Average Cost Inventory = 9 * 788.19 = $ 7093.57

    FIFO Cost of Goods Sold = Total Units - Ending Inventory FIFO

    = 17850-7100 = $ 16150

    LIFO Cost of Goods Sold = Total Units - Ending Inventory LIFO

    = 17850-6870 = 10980

    Gross Profit Cost of Goods Sold = Total Units - Ending Inventory Gross Profit

    = 17850 - 6986 = 10864

    Moving-average cost Cost of Goods Sold = Total Units - Ending Inventory=

    = 17850-7093.57 = 10756.43
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