COMMERCE 1AA3 Chapter Notes - Chapter 6: Round-Off Error, Weighted Arithmetic Mean

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 1AA3
• Professor: Aadil Merali Juma

Document Summary

Green company recorded the following inventory transactions during 2006. Calculate the cost of goods sold and ending inventory assuming the following cost flow assumptions: (a) fifo, and (b) weighted average under: (1) periodic inventory system (2) perpetual inventory system. Cost of goods available for sale = 45x8 + 150x9 + 65 x 10 + 50x12 = ,960. Units available for sale = 45 + 150 + 65 + 50 = 310. Units sold = 120 + 80 = 200. Units in ending inventory = units available for sale units sold = 310 200 = 110. Cost of goods sold = 45x8 + 150x9 + 5*10 = ,760. Cost of ending inventory = 50 x12 + 60x10 = ,200. Cost per unit = cost of goods available for sale / units available for sale = 2,960/310 = . 55. Cost of goods sold = 200x9. 55 = ,910. Cost of ending inventory = 110x9. 55 = ,050. 50.