Question

Top Light Company uses a perpetual inventory system. The company began inventory at a cost of $12 per unit. During 2019, Top Light had the following purchases and sales of lamps PURCHASE/ SOLD UNITS &COST/UNIT OR SELLING PRICE/ UNIT 2,000 units@$18/unit 2,500 units @$30/ unit 3,500 units@$23/unit 2,000 units@$33/unit DATE Purchased Feb 13 Sold Purchased Sold April 24 June 6 October 18 Required: 1. Calculate the cost of goods sold and ending inventory using FIFO Inventory Balance Cost/ unit Cost of Goods Sold Purchases Date Cost/ Total Total cost Units Total cost unit Units Cost/unit cost Units Jan. 1 beginning inventory Feb 13 Apr. 24 Jun. 6 Oct. 18 Totals Ending inventory Cost of goods sold Cost of goods available for sale

Answer 1

1. caiculate the cost of goods fold and ending Tnventory Answer using weighted Average Inventory Balance Cost of goods Sold Units CostiunitTetal ces units Costlunit Totel cose Units CaselunitTotelcase Date purchases Janl. Beginning Inventery l00012 $3.000 $19.77 59310 $19.77$9885 12000 $36000 2500 $19.74 2000 $18 Feb13. Apr24 4000 $19.7 080 $80500 Jane6. 3500 $23 2000$19.77 39540 2000 $19.33 $39540 October $8.9.969 $116.500 4500 Totals 5500 1 1

$88969 1 Costof goods sold 39546 Inventory Ending

Caiculation of weignted Average cost per unit Total cost of goods availeble for sale weigne Average cost = perun't Total units availatlefor sale Totalcost of goods availabte for sale units Tan. Begimning znvenery Claap12 Tot9i cost 12.000 $36.000 t000 Fab13. purchases (2009 2o00 $ 80500 JUnel purchases500 x$23) | 3500 unts &6500 $1285 00 Total

= $128500 Totai cost of goods available Forsale Totai units avatlable 6500 units For sale 12850 Weighted Average cost beT unit 6500units $19.77