a. Novak Inc. uses a perpetual inventory system. Its records show the following for the month of May. Date Explanation Units Unit Cost Total Cost May 1 Inventory 27 $ 7 $ 189 May 15 Purchase 26 8 208 May 18 Sale ( 46 ) May 24 Purchase 40 9 360 Total 47 $ 757 Calculate the cost of goods sold for May and the ending inventory at May 31 using the FIFO formula. Cost of goods sold $ Ending Inventory $ b. Ayayai Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 79 units were sold. Date Explanation Units Unit Cost Total Cost May 1 Inventory 31 $ 10 $ 310 May 15 Purchase 26 11 286 May 24 Purchase 42 12 504 Total 99 $ 1,100 Calculate the Cost of goods sold and the ending inventory at May 31 using the FIFO formula. Cost of goods sold $ Ending inventory $
a. Novak Inc. uses a perpetual inventory system. Its records show the following for the month of May. Date Explanation Units Unit Cost Total Cost May 1 Inventory 27 $ 7 $ 189 May 15 Purchase 26 8 208 May 18 Sale ( 46 ) May 24 Purchase 40 9 360 Total 47 $ 757 Calculate the cost of goods sold for May and the ending inventory at May 31 using the FIFO formula. Cost of goods sold $ Ending Inventory $ b. Ayayai Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 79 units were sold. Date Explanation Units Unit Cost Total Cost May 1 Inventory 31 $ 10 $ 310 May 15 Purchase 26 11 286 May 24 Purchase 42 12 504 Total 99 $ 1,100 Calculate the Cost of goods sold and the ending inventory at May 31 using the FIFO formula. Cost of goods sold $ Ending inventory $
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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a. Novak Inc. uses a perpetual inventory system. Its records show the following for the month of May.
Date | Explanation | Units | Unit Cost |
Total Cost |
||||||||
May | 1 | Inventory | 27 | $ 7 | $ 189 | |||||||
May | 15 | Purchase | 26 | 8 | 208 | |||||||
May | 18 | Sale | ( 46 | ) | ||||||||
May | 24 | Purchase | 40 | 9 | 360 | |||||||
Total | 47 | $ 757 |
Calculate the cost of goods sold for May and the ending inventory at May 31 using the FIFO formula.
Cost of goods sold | $ | |
Ending Inventory | $ |
b. Ayayai Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 79 units were sold.
Date | Explanation | Units | Unit Cost |
Total Cost | ||||||||
May 1 | Inventory | 31 | $ 10 | $ 310 | ||||||||
May 15 | Purchase | 26 | 11 | 286 | ||||||||
May 24 | Purchase | 42 | 12 | 504 | ||||||||
Total | 99 | $ 1,100 |
Calculate the Cost of goods sold and the ending inventory at May 31 using the FIFO formula.
Cost of goods sold | $ | ||
Ending inventory | $ |
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