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In: Accounting

Custom Prints Inc. (CPI) specializes in logo-imprinted coffee mugs. CPI tracks the number of units purchased...

Custom Prints Inc. (CPI) specializes in logo-imprinted coffee mugs. CPI tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, December 31. The inventory’s selling price is $11 per unit.

Transactions

Unit Cost

Units

Total Cost

Inventory December 1

$4.50

250

$1,125

Sale, December 10

(200)

Purchase, December 12

$5.00

300

$1,500

Sale, December 17

(150)

Purchase, December 26

$6.00

80

$480
  1. Compute the amount of goods available for sale at December 3 [1 mark]

  1. Compute the ending inventory, and cost of goods sold at December 31, under each of the following inventory costing methods: Specific identification, first in first out, weighted average method
  1. Assuming that the December 10 sale was from the beginning inventory and the December 17 sales was the December 12 purchase. [2 marks]

Cost of goods sold =

Ending Inventory =

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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