Question

Wooderson Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gizmo for the month of March. Wooderson Company uses the PERIODICinventory system.

		Purchases		Sales
		Units	Unit Cost	Units	Price/Unit
1-Mar	Beginning inventory	100	$40
3-Mar	Purchase	60	$50
4-Mar	Sales			60	$80
10-Mar	Purchase	200	$55
16-Mar	Sales			70	$90
19-Mar	Sales			90	$90
25-Mar	Sales			60	$90
30-Mar	Purchase	40	$60

Instructions - SHOW ALL COMPUTATIONS FOR FULL CREDIT

(a) Using the FIFO assumption, calculate the amount charged to cost of goods sold for March.

(b) Using the weighted-average method, calculate the amount assigned to the inventory on hand on March 31.

(c) Using the LIFO assumption, calculate the amount assigned to the inventory on hand on March 31.

(d) Using the FIFO assumption, calculate the amount assigned to inventory on hand on March 31.

(e) Using the LIFO assumption, calculate he charged to cost of goods sold for March.

(f) Using the weighted-average method, calculate the amount charged to cost of goods sold for March.

g) If they used the PERPETUAL system, calculate the moving average per unit cost on March 16.

Answer 1