Answer:
Find the detailed answer below
Explanation:
January 1 300 units at $5 $1,500
January 8 500 units at $9 $4,500
January 29 910 units at $10 $9,100
1,110 units are available at the end of the month. That means 600 units were sold
A. Under FIFO
1. Cost of goods available for sale:
$1,500 + $4,500 + $9,100 = $15,100
2. Cost of goods sold
300 units at $5 $1,500
300 units at $9 $2,700
Total $4,200
3. Ending inventory
200 units at $9 $1,800
910 units at $10 $9,100
Total $10,900
B. Under LIFO(Last in First Out)
1. Cost of goods available for sale:
$1,500 + $4,500 + $9,100 = $15,100
2. Cost of goods sold
600 units at $10 $6,000
Total $6,000
3. Ending inventory
310 units at $10 $3,100
500 units at $9 $4,500
300 units at $5 $1,500
Total $9,100
C. Weighted average cost flow assumption: Cost of goods available for sale / total units
1. Cost of goods available for sale:
$1,500 + $4,500 + $9,100 = $15,100
2. Cost of goods sold
$15,100 / 1,710 = $8.83
$8.83 x 600 = $5,298
3. Ending inventory
$8.83 x 1,110 = $9,801.3
Under perpetual Inventory System
Between January 9 and January 28. The prevailing price that will be used to sell the inventory will be the price at January 8($9)
1. Cost of goods available for sale:
$1,500 + $4,500 + $9,100 = $15,100
2. Cost of goods sold
600 units at $9 $5,400
Total $5,400
3. Ending inventory
1,110 units at $9 $9,990
Total $9,990
