Question

Cullumber Company uses a perpetual inventory system. The following information is available for November: Units Purchase Price Sales Price Nov. 1 Balance 8 $6.00 4 Purchase 18 $6.50 7 Purchase 20 $7.00 10 Sale (8) $9.00 12 Sale (30) $9.00

Calculate the cost of goods sold and ending inventory under FIFO. (Round answers to 0 decimal places, e.g. 5,275.) FIFO Cost of goods sold $ Ending inventory $

Calculate the cost of goods sold and ending inventory under weighted average. (Round the weighted average cost per unit to two decimal places, e.g. 5.27 and final answers to 0 decimal places, e.g. 5,275.) Weighted average Cost of goods sold $ Ending inventory $

Answer 1

Part 1

	Available for sale			Cost of goods sold			Ending Inventory
Date	Units	Unit cost	Total Cost	Units	Unit cost	Total Cost	Units	Unit Cost	Total Cost
Nov-01							8	6.00	48.00
Nov-04	18	6.50	117.00				8	6.00	48.00
							18	6.50	117.00
Nov-07	20	7.00	140.00				8	6.00	48.00
							18	6.50	117.00
							20	7.00	140.00
Nov-10				8	6.00	48.00	18	6.50	117.00
							20	7.00	140.00
Nov-12				18	6.50	117.00
				12	7.00	84.00	8	7.00	56.00
Total						249.00	8		56.00

	FIFO
Cost of goods sold	$249
Ending inventory	$56

Part 2

	Available for sale			Cost of goods sold			Ending Inventory
Date	Units	Unit cost	Total Cost	Units	Unit cost	Total Cost	Units	Unit Cost	Total Cost
Nov-01							8	6.00	48
Nov-04	18	6.50	117.00				26	6.35	165
Nov-07	20	7.00	140.00				46	6.63	305
Nov-10				8	6.63	53	38	6.63	252
Nov-12				30	6.63	199	8	6.63	53
Total						252	8		53

	Weighted average
Cost of goods sold	$252
Ending inventory	$53