Question

Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse 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	$870	$ 5,220
October 4	Sale	4
October 10	Purchase	5	880	4,400
October 13	Sale	3
October 20	Purchase	4	890	3,560
October 28	Sale	7
October 30	Purchase	7	900	6,300
				$19,480

1. 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.

Ending Inventory=

Cost of Goods Sold=

2. Using FIFO, calculate ending inventory and cost of goods sold at October 31.

Ending Inventory=

Cost of Goods Sold=

3. Using LIFO, calculate ending inventory and cost of goods sold at October 31.

Ending Inventory=

Cost of Goods Sold=

4. 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.)

Ending Inventory=

Cost of Goods Sold=

Answer 1

Cost of Goods availablefor Sale
Date	Transactions	Unit	Cost per unit	Total cost
October 1	Beginning inventory	6	$    870.00	$    5,220.00
October 10	Purchase	5	$    880.00	$    4,400.00
October 20	Purchase	4	$    890.00	$    3,560.00
October 30	Purchase	7	$    900.00	$    6,300.00
				$ 19,480.00
Specific Identification Method
	Purchase Date	Unit	Cost per unit	Total cost
October 4 sale	October 1	4	$    870.00	$    3,480.00
October 13 sale	October 1	1	$    870.00	$        870.00
	October 10	2	$    880.00	$    1,760.00
October 28 sale	October 10	3	$    880.00	$    2,640.00
	October 20	4	$    890.00	$    3,560.00
Cost of Goods Sold		14		$ 12,310.00
Cost of Goods available for sale				$ 19,480.00
Ending Inventory [19480-12310]				$    7,170.00
FIFO
Date	Transactions	Units	Cost per Unit	Total Cost
October 1	Beginning inventory	6	$870	$ 5,220.00
October 10	Purchase	5	$ 880.00	$ 4,400.00
October 20	Purchase	4	$ 890.00	$ 3,560.00
October 30	Purchase	7	$ 900.00	$ 6,300.00
Cost of Goods available for sale		22		$ 19,480.00
Less: Ending Inventory	Oct-30	7	$    900.00	$    6,300.00
	October 20	1	$    890.00	$        890.00
Cost of Ending Inventory		8		$    7,190.00
Cost of Goods Sold [ $19480-$1520]		14		$ 12,290.00
LIFO
Date	Transactions	Units	Cost per Unit	Total Cost
October 1	Beginning inventory	6	$870	$ 5,220.00
October 10	Purchase	5	$ 880.00	$ 4,400.00
October 20	Purchase	4	$ 890.00	$ 3,560.00
October 30	Purchase	7	$ 900.00	$ 6,300.00
Cost of Goods available for sale		22		$ 19,480.00
Less: Ending Inventory	October 1	6	$    870.00	$    5,220.00
	October 10	2	$    880.00	$    1,760.00
Cost of Ending Inventory		8		$    6,980.00
Cost of Goods Sold [ $19480-$1520]		14		$ 12,500.00
Weighted Average
Date	Transactions	Units	Cost per Unit	Total Cost
October 1	Beginning inventory	6	$870	$ 5,220.00
October 10	Purchase	5	$ 880.00	$ 4,400.00
October 20	Purchase	4	$ 890.00	$ 3,560.00
October 30	Purchase	7	$ 900.00	$ 6,300.00
Cost of Goods available for sale		22		$ 19,480.00
Weighted Average Cost [$19480/22 units]				$        885.45
Less: Ending Inventory		8	$    885.45	$    7,083.64
Cost of Goods Sold		14	$    885.45	$ 12,396.36