Question

Question 5 Swifty Limited uses a perpetual inventory system. The inventory records show the following data for its first month of operations: Date Explanation Units Unit Cost Total Cost Balance in Units Aug. 2 Purchases 249 $67 $16,683 249 3 Purchases 515 102 52,530 764 10 Sales (274) 490 15 Purchases 859 119 102,221 1,349 25 Sales (330) 1,019 (a) Your answer is correct. Calculate the cost of goods sold and ending inventory using the FIFO cost method. Cost of goods sold 52893 Ending inventory T 118541 SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 2 of 15 used (b) x Your answer is incorrect. Try again. Calculate the cost of goods sold and ending inventory using the average cost method. (Round average cost per unit and final answers to 2 decimal places, e.g. 1.25.) Cost of goods sold 35706.19 Ending inventory al 33607.64

Answer 1

Solution b:

Computation of ending inventory COGS under Average Cost - Perpectual
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
2-Aug	0	$0.00	$0.00	249	$67.00	$16,683	0	$0.00	$0.00	249	$67.00	$16,683.00
3-Aug	249	$67.00	$16,683	515	$102.00	$52,530	0	$0.00	$0.00	764	$90.59	$69,213.00
10-Aug	764	$90.59	$69,213	0	$0.00	$0	274	$90.59	$24,822.46	490	$90.59	$44,390.54
15-Aug	490	$90.59	$44,391	859	$119.00	$102,221	0	$0.00	$0.00	1349	$108.68	$146,611.54
3-Mar	1349	$108.68	$146,612	0	$0.00	$0	330	$108.68	$35,864.94	1019	$108.68	$110,746.59
Total							604		$60,687.41	1019		$110,746.59