1
answer
0
watching
266
views

During July 2014, Micanopy, sold 500 units of its productsEmpire for $8,000. The following units were available.

Units Cost

BeginningInventory 200 $2

Purchase1 80 $4

Purchase2 120 $6

Purchase3 300 $9

Purchase4 180 $12

A sale of 500 units was made after purchase 3. Of the unitssold, 200 came from beginning inventory and 300 came from purchase3.

Determine the costs of goods available for sale and endinginventory in units. Then determine the costs that should beassigned to cost of goods sold and ending inventory under ach ofthe following assumptions. (For each alternative, show the grossmargin. Round unit costs to cents and totals to dollars.)

Costs are assigned under the periodic inventory system using a.)the specific identification method, b) the average-cost method, c.)FIFO method and d.) LIFO method

Costs are assigned under the perpetual inventory system usinga.) the average-cost method, b.) the FIFO method, and c) the LIFOmethod

E7A. Periodic and PerpetualSystems and Inventory Costing Methods

Cost of goods available forsale and ending inventory in units

Units

Cost

Total

Beginninginventory

200

$ 2

$ 400

Purchase 1

80

4

320

Purchase 2

120

6

720

Purchase 3

300

9

2,700

Purchase 4

180

12

2,160

Cost of goods available forsale

880

$6,300

Sale in units

500

Ending inventory inunits

380

1.

Periodic inventorysystem

a.

Specific identificationmethod:

Sales

$8,000

Cost of goods available forsale

Less endinginventory*

Cost of goodssold

Gross margin

$4,900

*

Purchase 1

80

units

For unlimited access to Homework Help, a Homework+ subscription is required.

Reid Wolff
Reid WolffLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in

Related questions

Weekly leaderboard

Start filling in the gaps now
Log in