the following information is for the inventory of mini-kettles at Pronghorn Company Limited for the month of May. Date Transaction Units In Unit Cost Total Units Sold Unit Price Total May 1 Balance 100 $4.00 $400 6 Purchase 810 4.40 3,564 7 Sale 350 $7.20 $2,520 10 Sale 350 7.40 2,590 12 Purchase 450 5.00 2,250 15 Sale 250 8.00 2,000 18 Purchase 340 4.80 1,632 22 Sale 450 7.60 3,420 25 Purchase 510 4.60 2,346 30 Sale 250 7.60 1,900 Totals 2,210 $10,192 1,650 $12,430 1. Assuming that the perpetual inventory method is used, calculate the inventory cost at May 31 under FIFO. 2. Assuming that the perpetual inventory method is used, calculate the inventory cost at May 31 under moving-average.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...

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the following information is for the inventory of mini-kettles at Pronghorn Company Limited for the month of May.

Date		Transaction		Units In		Unit Cost		Total	Units Sold		Unit Price	Total
May 1			Balance		100			$4.00		$400
6			Purchase		810			4.40		3,564
7			Sale									350		$7.20	$2,520
10			Sale									350		7.40	2,590
12			Purchase		450			5.00		2,250
15			Sale									250		8.00	2,000
18			Purchase		340			4.80		1,632
22			Sale									450		7.60	3,420
25			Purchase		510			4.60		2,346
30			Sale									250		7.60	1,900
Totals	2,210						$10,192		1,650				$12,430

1. Assuming that the perpetual inventory method is used, calculate the inventory cost at May 31 under FIFO.

2. Assuming that the perpetual inventory method is used, calculate the inventory cost at May 31 under moving-average.

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