Question

Inventory Costing Methods-Perpetual Method Fortune Stores uses the perpetual inventory system for its merchandise inventory. The April 1 inventory for one of the items in the merchandise inventory consisted of 130 units with a unit cost of $335. Transactions for this item during April were as follows:

April	9	Purchased	40	units @	$355 per unit
	14	Sold	80	units @	560 per unit
	23	Purchased	20	units @	360 per unit
	29	Sold	40	units

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

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

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

a.	Weighted Average
	Ending Inventory	Answer
	Cost of goods Sold	Answer
b.	First-in, First-out:
	Ending Inventory	Answer
	Cost of Goods Sold:	Answer
c.	Last-in, first-out:
	Ending Inventory	Answer
	Cost of Goods Sold:	Answer

Answer 1

Answers

a.	Weighted Average
	Ending Inventory	$ 24,038
	Cost of Goods Sold	$ 40,912
b.	First-in, First-out:
	Ending Inventory	$ 24,750
	Cost of Goods Sold:	$ 40,200
c.	Last-in, first-out:
	Ending Inventory	$ 23,450
	Cost of Goods Sold:	$ 41,500

Calculations:

Weighted average Method
Fortune Stores
Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
1-Apr							130	$   335.00	$   43,550
9-Apr	40	$    355.00	$    14,200				170	$   339.71	57,750
14-Apr				80	$          339.71	$            27,176	90	$   339.71	30,574
									$            -
23-Apr	20	$    360.00	$      7,200				110	$   343.40	37,774
29-Apr				40	$          343.40	$            13,736	70	$   343.40	24,038
Totals	60		21,400	120		40,912	70		24,038

First-in, First-out Method
Fortune Stores
Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
1-Apr							130	$   335.00	$   43,550
9-Apr	40	$    355.00	$    14,200				130	$   335.00	$   43,550
							40	$   355.00	$   14,200
14-Apr				80	$          335.00	$            26,800	50	$   335.00	$   16,750
							40	$   355.00	$   14,200
23-Apr	20	$    360.00	$      7,200				50	$   335.00	$   16,750
							40	$   355.00	$   14,200
							20	$   360.00	$      7,200
29-Apr				40	335	$            13,400	10	$   335.00	$      3,350
							40	$   355.00	$   14,200
							20	$   360.00	$      7,200
Totals	60		21,400	120		40,200	70		24,750

Last-in, First-out Method
Fortune Stores
Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
1-Apr							130	$   335.00	$   43,550
9-Apr	40	$    355.00	$    14,200				130	$   335.00	$   43,550
							40	$   355.00	$   14,200
14-Apr				40	$          355.00	$            14,200	90	$   335.00	$   30,150
				40	$          335.00	$            13,400
23-Apr	20	$    360.00	$      7,200				90	$   335.00	$   30,150
							20	$   360.00	$      7,200
29-Apr				20	360	$              7,200	70	$   335.00	$   23,450
				20	335	$              6,700
Totals	60		21,400	120		41,500	70		23,450

In case of any doubt, please comment.