The Botton Company sells many products. Gizmp is one of its popular items. Below is an analysis of the inventory purchas
Posted: Tue Jul 05, 2022 11:48 am
The Botton Company sells many products. Gizmp is one of itspopular items. Below is an analysis of the inventory purchases andsales of Gizmp for the month of March. The perpetual inventorysystem is used.
Purchases Sales
Units UnitCost Units Selling Price
3/1 Beginning Inventory 100 $70
3/3 Purchase 60 $75
3/4 Sale 60 $120
3/10 Purchase 200 $80
3/16 Sales 70 $130
3/19 Sales 80 $130
3/25 Sales 50 $130
3/30 Purchase 40 $95
INSTRUCTIONS
(a) Using the FIFO assumption, calculate the amount charged tocost of goods sold and the value of ending inventory for March
(b) Using the LIFO assumption, calculate the amount charged tocost of goods sold and the value of ending inventory for March
(c) Using the moving average cost method, calculate the amountassigned to ending inventory.
Purchases Sales
Units UnitCost Units Selling Price
3/1 Beginning Inventory 100 $70
3/3 Purchase 60 $75
3/4 Sale 60 $120
3/10 Purchase 200 $80
3/16 Sales 70 $130
3/19 Sales 80 $130
3/25 Sales 50 $130
3/30 Purchase 40 $95
INSTRUCTIONS
(a) Using the FIFO assumption, calculate the amount charged tocost of goods sold and the value of ending inventory for March
(b) Using the LIFO assumption, calculate the amount charged tocost of goods sold and the value of ending inventory for March
(c) Using the moving average cost method, calculate the amountassigned to ending inventory.