Inventory Costing Methods—Perpetual Method The Luann Company uses the perpetual inventory system. The following July data are for an item in Luann’s inventory: July 1 Beginning inventory 30 units @ $9 per unit 10 Purchased 50 units @ $11 per unit 15 Sold 60 units 26 Purchased 25 units @ $13 per unit Calculate the cost of goods sold for the July 15 sale using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Round your final answers to the nearest dollar. For weighted-average cost, do not round the weighted-average unit cost. A. First-in, First-out: Cost of Goods Sold: Answer B. Last-in, first-out: Cost of Goods Sold Answer C. Weighted-average cost: Cost of Goods Sold Answer
Inventory Costing Methods—Perpetual Method The Luann Company uses the perpetual inventory system. The following July data are for an item in Luann’s inventory: July 1 Beginning inventory 30 units @ $9 per unit 10 Purchased 50 units @ $11 per unit 15 Sold 60 units 26 Purchased 25 units @ $13 per unit Calculate the cost of goods sold for the July 15 sale using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Round your final answers to the nearest dollar. For weighted-average cost, do not round the weighted-average unit cost. A. First-in, First-out: Cost of Goods Sold: Answer B. Last-in, first-out: Cost of Goods Sold Answer C. Weighted-average cost: Cost of Goods Sold Answer
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.12MCP
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Inventory Costing Methods—Perpetual Method
The Luann Company uses the perpetual inventory system. The following July data are for an item in Luann’s inventory:
| July | 1 | Beginning inventory | 30 | units @ | $9 | per unit |
| 10 | Purchased | 50 | units @ | $11 | per unit | |
| 15 | Sold | 60 | units | |||
| 26 | Purchased | 25 | units @ | $13 | per unit |
Calculate the cost of goods sold for the July 15 sale using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.
Round your final answers to the nearest dollar. For weighted-average cost, do not round the weighted-average unit cost.
| A. | First-in, First-out: | |
| Cost of Goods Sold: | Answer
|
|
| B. | Last-in, first-out: | |
| Cost of Goods Sold | Answer
|
|
| C. | Weighted-average cost: | |
| Cost of Goods Sold | Answer
|
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