Question

In: Accounting

Stow Clothing began selling a new line of sweatshirts during the month of February. At the...

Stow Clothing began selling a new line of sweatshirts during the month of February. At the beginning of the month, they did not have any inventory. The following is a summary of the purchases and sales of the inventory during the month.

                                                                                                                    Unit

                                                                                  Units                        Cost                  Total

     Feb 2      Purchase                                              900                           40                   36,000

   Feb 10      Sale (at $100 per unit)                       800

   Feb 20      Purchase                                              800                           43                   34,400

   Feb 28      Sale (at $100 per unit)                       200

Required:

Calculate the following under the given independent assumptions. Show all calculations.

a.         Cost of Goods Sold under the Weighted Average cost flow assumption, assuming a periodic inventory system.

b.         Cost of Goods Sold under the LIFO cost flow assumption, assuming a periodic inventory system.

c.         Cost of Goods Sold under the FIFO cost flow assumption, assuming a perpetual inventory system.

Solutions

Expert Solution

Answer of Part a:

Answer of Part b:

Answer of Part c:

ekkarill92 answered 2 years ago
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