Question

DATE                     ACTIVITIES                          UNITS ACQUIRED AT COST           UNITS SOLD AT RETAIL

OCT 1          Beginning Inventory      200 units @ $25.00 per unit

OCT 5          Purchase                          800 units @ $27.50 per unit

OCT 10        Sales 840 units @ $42.50

OCT 20        Purchase                         240 units @ $30.00 per unit

OCT 27        Purchase                         400 units @ $31.00 per unit

OCT 30        Sales                                                    320 units @ $47.50

TOTALS 1640 units   1160 units

REQUIRED:

1. Russell uses a Perpetual Inventory System. Determine the costs assigned to ending inventory and to cost of goods sold using:

(a) FIFO

(b) LIFO

(c)MOVING AVERAGE

2. Russell uses a Periodic Inventory System. Determine the costs assigned to ending inventory and to cost of goods sold using:

(a) LIFO

(b) WEIGHTED-AVERAGE

Answer 1