Calculate ending inventory and cost of goods sold for four inventory methods.
Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.

Date Transactions Units Unit Cost Total Cost
October 1 Beginning inventory 6 $760 $4,560
October 4 Sale 4
October 10 Purchase 5 770 3,850
October 13 Sale 3
October 20 Purchase 4 780 3,120
October 28 Sale 7
October 30 Purchase 8 790 6,320
$17,850

Respuesta :

Answer:

       Date Transactions        Units       Unit Cost    Total Cost

October 1 Beginning inventory 6          $760          $4,560

October 4        Sale                   4                                          

                                                 2           $ 760            1520

October 10 Purchase               5                770            3,850

                                               7              $ 767.14

October 13           Sale             3                                              

                                               4                  767.14           3068.57    

October 20 Purchase             4                780              3,120

October 28     Sale                 7                                              

                                              1                 773.57

October 30 Purchase            8                   790               6,320

                                                9                 788.19               7093.57

 Inventory Units             23                       $17,850

Ending Units = 23- 14= 9 units

FIFO Ending Inventory = $ 7100

8 units at $790 = $ 632 0

1 unit at $780 = $ 780

LIFO Ending Inventory = 6870

6 units at $760 = $ 4560

3 units at $770 = $ 2310

Gross Profit Inventory = $ 17850/23 * 9= $ 6985

Moving Average Cost Inventory = 9* 788.19= $ 7093.57

FIFO Cost of Goods Sold= Total Units - Ending Inventory FIFO

= 17850-7100 = $ 16150

LIFO Cost of Goods Sold= Total Units - Ending Inventory LIFO

= 17850-6870= 10980

Gross Profit Cost of Goods Sold= Total Units - Ending Inventory Gross Profit

= 17850- 6986= 10864

Moving-average cost Cost of Goods Sold= Total Units - Ending Inventory=

= 17850-7093.57= 10756.43

To calculate the ending inventory and cost of goods sold for Sandra's Purse Boutique, these Four Inventory Methods are used.

                                  Specific      First-in, First-    Last-in, First-    Weighted-

                         Identification:          out (FIFO):       out (LIFO):      Average:

Ending Inventory      $7,090               $7,100            $7,090          $6,985

Cost of goods sold $10,760            $10,750           $10,760         $10,865

Data Analysis:

Date          Description                Units  Unit Cost  Total Cost

October 1 Beginning inventory  6            $760     $4,560

October 4 Sale                                 -4

October 10 Purchase                 5              770        3,850

October 13 Sale                               -3

October 20 Purchase               4              780         3,120

October 28 Sale                             -7

October 30 Purchase               8             790        6,320

                   Total                    23   14                  $17,850

Ending inventory = Beginning inventory + Purchases - Units sold

= 9 (23 - 14) units

Note: For specific identification, the ending inventory was part of units purchased on October 10 and October 30.

Specific Identification:

Ending inventory = $7,090 (1 x $770 + 8 x $790)

Cost of goods sold = Cost of goods available for sale - Ending Inventory

Cost of goods sold = $10,760 ($17,850 - $7,090)

First-in, First-out (FIFO):

Ending inventory = $7,100 (1 x $780 + 8 x $790)

Cost of goods sold = Cost of goods available for sale - Ending Inventory

Cost of goods sold = $10,750 ($17,850 - $7,100)

Last-in, First-out (LIFO):

Ending inventory = $7,090 (1 x $770 + 8 x $790)

Cost of goods sold = Cost of goods available for sale - Ending Inventory

Cost of goods sold  = $10,760 ($17,850 - $7,090)

Weighted-Average:

Weighted average purchase price = Cost of goods available for sale/Total inventory

= $776 ($17,850/23)

Ending inventory = $6,985 ($776.09 x 9)

Cost of goods sold = $10,865 ($776.09 x 14)

Learn more about the four inventory costing methods at https://brainly.com/question/14121444 and https://brainly.com/question/24188235

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