Question

Inventory Costing Methods-Perpetual Method

Kali Company uses the perpetual inventory system for its merchandise inventory. The June 1 inventory for one of the items in the merchandise inventory consisted of 60 units with a unit cost of $45. Transactions for this item during June were as follows:

June	5	Purchased	40	units @	$50 per unit
	13	Sold	50	units @	$95 per unit
	25	Purchased	40	units @	$53 per unit
	29	Sold	20	units@	$110 per unit

Required
a. Compute the cost of goods sold and the ending inventory cost for the month of June using the weighted-average cost method. Do not round until your final answers. Round to the nearest dollar.

b. Compute the cost of goods sold and the ending inventory cost for the month of June using the first-in, first-out method.

c. Compute the cost of goods sold and the ending inventory cost for the month of June using the last-in, first-out method.

a) Weighted average

Ending Inventory:

Cost of goods sold:

b) First in, First out:

Ending Inventory:

Cost of goods sold:

c) Last in, First Out:

Ending Inventory:

Cost of goods sold:

Answer 1