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  • Assignment No. 1 Finals

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    Yashi Santos
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    ABC Co. is a wholesaler of guitar picks that tracks inventory using different costing methods. The summary provides inventory transactions and costs for "Pick X" during August. It then lists the ending inventory and cost of goods sold that result from applying FIFO periodic, FIFO perpetual, weighted average periodic, and weighted average perpetual costing methods. Gavial, Inc. sells electric stoves and uses perpetual FIFO costing. The summary lists Gavial's inventory transactions during December, including beginning inventory, purchases, sales, and returns. It also presents the ending inventory and cost of goods sold amounts under FIFO costing. Finally, it asks what the ending inventory and cost of goods sold would be if

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    ABC Co. is a wholesaler of guitar picks that tracks inventory using different costing methods. The summary provides inventory transactions and costs for "Pick X" during August. It then lists the ending inventory and cost of goods sold that result from applying FIFO periodic, FIFO perpetual, weighted average periodic, and weighted average perpetual costing methods. Gavial, Inc. sells electric stoves and uses perpetual FIFO costing. The summary lists Gavial's inventory transactions during December, including beginning inventory, purchases, sales, and returns. It also presents the ending inventory and cost of goods sold amounts under FIFO costing. Finally, it asks what the ending inventory and cost of goods sold would be if

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    35 views2 pages

    Assignment No. 1 Finals

    Uploaded by

    Yashi Santos
    ABC Co. is a wholesaler of guitar picks that tracks inventory using different costing methods. The summary provides inventory transactions and costs for "Pick X" during August. It then lists the ending inventory and cost of goods sold that result from applying FIFO periodic, FIFO perpetual, weighted average periodic, and weighted average perpetual costing methods. Gavial, Inc. sells electric stoves and uses perpetual FIFO costing. The summary lists Gavial's inventory transactions during December, including beginning inventory, purchases, sales, and returns. It also presents the ending inventory and cost of goods sold amounts under FIFO costing. Finally, it asks what the ending inventory and cost of goods sold would be if

    Copyright:

    © All Rights Reserved
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    of 2

    Problem no.

    ABC Co. is a wholesaler of guitar picks. The activity for product "Pick X" during August is shown below:

    Date Transaction Units Unit Cost Total Cost


    08 - 01 Inventory 2,000 46.00 92,000
    08 - 07 Purchase 3,000 47.20 141,600
    08 - 12 Sales 4,200  
    8 - 13 Sales Return 600  
    8 - 21 Purchase 4,800 48.00 230,400
    8 - 22 Sales 3,800  
    8 - 29 Purchase 1,900 48.60 92,340
    (14,580
    8 - 30 Purchase Return 300 48.60
    )
    Total Goods Available for Sale ₱541,760

    REQUIREMENTS: Compute for the (a) ending inventory and (b) cost of goods sold under the following
    cost formulas:
    1. FIFO – periodic
    A. 192,960
    B. 348,800
    2. FIFO – perpetual
    A. 192,960
    B. 348,800
    3. Weighted average – periodic
    A. 190,080
    B. 351,680
    4. Weighted average - perpetual
    A. 192,270
    B. 349,490

    Problem no. 2

    GAVIAL, INC. sells electric stoves. It uses the perpetual inventory system and allocates cost to inventory
    on a first-in, first-out basis. The company's reporting date is December 31. At December 1, 2014,
    inventory on hand consisted of 350 stoves at P820 each and 43 stoves at P850 each. During the month
    ended December 31, 2014, the following Inventory transactions occurred (all purchase and sales
    transactions are on credit):
    2014
    Dec. 1 Sold 300 stoves for P1,200 each.
    3 Five stoves were returned by customers. They had originally cost P820 each and were
    sold for P1,200 each.
    9 Purchased 55 stoves at P910 each.
    10 Purchased 76 stoves at P960 each.
    15 Sold 86 stoves for P1,350 each.
    17 Returned one damaged stove to the supplier. This stove had been purchased on
    December 9.
    22 Sold 60 stoves for P1,250 each
    26 Purchased 72 stoves at P980 each.

    Questions:
    1. What is the cost of ending inventory on December 31, 2014? 148,980
    2. What is the cost of goods sold in December 2014? 367,230
    3. If moving average is used to allocate cost, what is the cost of Gavial’s inventory and cost of
    goods sold on December 31, 2014?

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