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The Stilton Company has the following inventory and credit purchases during the fiscal year ended December...

The Stilton Company has the following inventory and credit purchases during the fiscal year ended December 31, 2020.

Beginning 640 units @ $75/unit
Feb. 10 350 units @ $72/unit
Aug. 21 230 units @ $85/unit


Stilton Company has two credit sales during the period. The units have a selling price of $135.00 per unit.

Sales
  Mar. 15 430 units
  Sept. 10 335 units


Stilton Company uses a perpetual inventory system.

Required:
1. Calculate the dollar value of cost of goods sold and ending inventory using: (Do not round intermediate calculations. Round the "Weighted-average cost" to 2 decimal places. Round final answers to 2 decimal places.)



2. Calculate the dollar value of cost of goods sold and ending inventory using specific identification, assuming the sales were specifically identified as follows:

Mar. 15: 230 units from beginning inventory
200 units from the February 10 purchase
Sept. 10: 225 units from beginning inventory
40 units from the February 10 purchase
70 units from the August 21 purchase




3. Using information from your answers in Parts 1 and 2, journalize the credit purchase on February 10 and the credit sale on September 10 for each of:

a. FIFO



b. Moving weighted average (Do not round intermediate calculations. Round "Average cost per unit" to 2 decimal places. Round the final answers to nearest whole dollar.)



c. Specific identification

hi chegg team can you help me with this question.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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