Question

park company reported the following the march purchases and sales data for its only product

213 AM Tue Oct 29 49% Chapter 6 In_class exercise_student.pdf Chapter 6 In class exercise_student. pdf Print Chapter 6. In-class exercise 1. Costing method Exercise 6-3 (p.256) Park Company reported the following March purchases and sales data for its only peodact Units Sold at Retail Units Acquired at Cost Date Activities 50 units$7.00 $1,050 Mar Beginning inventory 0 unitsS15 Mar 10 Sales Mar 20 Prchase Mar 25 Sales 220 unitsS6.00 320 145 units$15 90 unis $5.00 450 Mar 30 Purchase 235 units 2820 460 units Tocals Park uses a perpetual inventory system Detenmine the cost assigned to ending inventory and to cost of goods sold using (a) specifie idenification, () weighted average cost, and (c) FIFO. (Round per unit costs to three decimals, but ieventory balances to the dollar) For specific identification, ending imventory coesists of 225 units, where 90 are from the March 30 purchase, 80 are from the March 20 parchase, and 55 are from beginning inventory (a)Specific identification Cost of goods sold- Beginning Inventory+ Net Purchases -Ending Inventory Ending Inventory=

Answer 1

Park Company FIFO Perpetual Purchase Cost of goods sold Balance Units Per unit cost Total Cost Units Per unit cost Total Cost Units Per unit cost Total Cost Date Mar-01 150 7 1050 Mar-10 90 7 630 60 7 420 1320 Mar-20 220 6 60 7 420 1320 220 6 Mar-25 60 7 420 135 6 810 85 510 Mar-30 135 90 5 450 6 810 450 90 5 Mar-31 135 6 810 90 5 450 Ending Purchases 1770 COGS 1560 1260 LIFO Perpetual Purchase Cost of goods sold Balance Units Per unit cost Total Cost Units Per unit cost Total Cost Units Per unit cost Total Cost Date Mar-01 150 7 1050 Mar-10 90 7 630 60 7 420 Mar-20 220 6 1320 60 7 420 220 6 1320 Mar-25 145 6 870 60 7 420 75 6 450 Mar-30 90 5 450 60 7 420 75 6 450 90 5 450 Mar-31 60 7 420 75 6 450 90 5 450 Purchases Ending 1320 1770 COGS 1500 LO LO

Weighted Average Perpetual Purchase Cost of goods sold Balance Date Units Per unit cost Total Cost Units Per unit cost Total Cost Units Per unit cost Total Cost Mar-01 150 7 1050 Mar-10 90 7 630 60 7 420 1320 Mar-20 220 6 60 7 420 1320 220 6 6.21 280 1740 6.21 Mar-25 145 6.21 901 135 839 Mar-30 90 5 450 135 6.21 839 450 90 5 1289 225 5.73 Mar-31 225 б 1289 Ending Purchases 1770 COGS 1531 1289 Specific Identification Purchase Cost of goods sold Balance Units Per unit cost Total Cost Units Per unit cost Total Cost Units Per unit cost Total Cost Date Mar-01 150 7 1050 630 Mar-10 90 7 60 7 420 1320 Mar-20 220 б 60 7 420 220 6 1320 Mar-25 5 7 35 55 7 385 140 6 840 80 6 480 Mar-30 90 5 450 55 7 385 80 б 480 90 5 450 Mar-31 55 7 385 80 6 480 90 5 450 Purchases Ending 1770 COGS 1505 1315 LO