Question

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Sandra’s Purse Boutique has the following transactions related to its top-selling Guccipurse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.

Date	Transactions	Units	Cost per Unit	Total Cost
October 1	Beginning inventory	6	$850	$ 5,100
October 4	Sale	4
October 10	Purchase	5	860	4,300
October 13	Sale	3
October 20	Purchase	4	870	3,480
October 28	Sale	7
October 30	Purchase	8	880	7,040
				$19,920
. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase. Using FIFO, calculate ending inventory and cost of goods sold at October 31. Using LIFO, calculate ending inventory and cost of goods sold at October 31. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Answer 1

FIFO Method ending inventory and cost of goods sold at October 31.

Date	Goods Purchase (Units @ Cost)	Cost of goods sold (Units @ Cost)	Inventory (Units @ Cost)	Balance($)
OCT 1			6 units @ $850	$5100
OCT 4		4 units @ $850 =3400	2units @ $850	$1700
OCT 10	5units @ $860=$4300		2units @ $850 5units @ $860	$6000
OCT 13		(3units) 2units @ $850 1units @ $860 = $2560	4units @ $860	$3440
OCT 20	4units @ $870=$3480		4units @ $860 4units @ $870	$ 6920
OCT 28		(7 units) 4units @ $860 3units @ $870 =$6050	1units @ $870	$870
OCT 30	8 units @ $880=7040		1units @ $870 8 units @ $880	$7910

LIFO Method calculate ending inventory and cost of goods sold at October 31

Date	Goods Purchase (Units @ Cost)	Cost of goods sold (Units @ Cost)	Inventory (Units @ Cost)	Balance($)
OCT 1			6 units @ $850	$5100
OCT 4		4 units @ $850 =3400	2units @ $850	$1700
OCT 10	5units @ $860=$4300		2units @ $850 5units @ $860	$6000
OCT 13		(3units) 3units @ $860=$2580	2units @ $850 2units @ $860	$3420
OCT 20	4units @ $870=$3480		2units @ $850 2units @ $860 4units @ $870	$ 6900
OCT 28		(7 units) 1units @ $850 2units @ $860 4units @ $870 =$6050	1units @ $850	$850
OCT 30	8 units @ $880=7040		1units @ $850 8 units @ $880	$7890

weighted-average Method calculate ending inventory and cost of goods sold at October 31

Date	Goods Purchase (Units @ Cost)	Cost of goods sold (Units @ Cost)	Inventory (Units @ Cost)	Balance($)
OCT 1			6 units @ $850	$5100
OCT 4		4 units @ $850 =3400	2units @ $850	$1700
OCT 10	5units @ $860=$4300		2units @ $850 5units @ $860 Averagr Cost $857	$6000
OCT 13		3units @ $857= 42571	4units @ $857	$3428
OCT 20	4units @ $870=$3480		4units @ $857 4units @ $870 Average Cost $864	$ 6920
OCT 28		7units @ $864=$6048	1units @ $864	$864
OCT 30	8 units @ $880=7040		1units @ $864 8 units @ $880 Average Cost $878	$7902