Beginning inventory, purchases, and sales for WCS12 are as follows: Oct. 1 Inventory 300 units at $8

Beginning inventory, purchases, and sales for WCS12 are as follows:

Oct.  1 Inventory 300 units at $8

13 Sale 175 units

22 Purchase 375 units at $10

29 Sale 280 units

Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of the merchandise sold on October 29, and (c) the inventory on October 31.

Answer:

a. Weighted average unit cost: $9.50 Inventory total cost after purchase on October 22: 125 units @ $8 $1,000 375 units @ $10 3,750 500 $4,750 Weighted average unit cost = $9.50 ($4,750 ÷ 500 units) b. Cost of merchandise sold (October 29): $2,660 (280 units × $9.50) c. Inventory, October 31: $2,090 (220 units × $9.50)

Beginning inventory, purchases, and sales for Item Foxtrot are as follows: Mar. 1 Inventory 270 units at $18

Beginning inventory, purchases, and sales for Item Foxtrot are as follows:

Mar.  1 Inventory 270 units at $18

 8 Sale 225 units

15 Purchase 375 units at $20

27 Sale 240 units

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on March 27 and (b) the inventory on March 31.

Answer:

a. Cost of merchandise sold (March 27): $4,800 = (240 units × $20)  b. Inventory, March 31: 45 units @ $18 $ 810 135 units @ $20 2,700 180 $3,510

The following units of an item were available for sale during the year: Beginning inventory 21,600 units at $20.00

The following units of an item were available for sale during the year:

Beginning inventory 21,600 units at $20.00

Sale 14,400 units at $40.00

First purchase 48,000 units at $25.20

Sale 36,000 units at $40.00

Second purchase 45,000 units at $26.40

Sale 33,000 units at $40.00

The firm uses the perpetual inventory system, and there are 31,200 units of the item on hand at the end of the year. What is the total cost of the ending inventory according to (a) FIFO, (b) LIFO?

Answer:

a. $823,680 ($26.40 × 31,200 units)

b. $763,200 [($20.00 × 7,200 units) + ($25.20 × 12,000 units) + ($26.40 × 12,000 units)] = $144,000 + $302,400 + $316,800