Problem 1
Yale Department Store maintains separate inventory records for each type of merchandise it sells.
The inventory records for product type X show the following for the month of September.
Beginning inventory; 9/1
Purchase, 9/8
Sale, 9/13
Purchase, 9/19
Sale, 9/22
Purchase, 9/26
Purchase, 9/29
Sale, 9/30
Unit
Unit
Selling
Units
Cost Price
200
$3.00
150
3.20
130
$5.00
50
3.50
80
5.25
100
3.55
50
3.60
80
5.50
Required
1. Assume that Yale uses a perpetual inventory system. Calculate the cost of ending
inventory and the cost of goods sold for September under the following inventory
valuation methods:
Ending
Inventory
Cost of
Goods Sold
FIFO
LIFO
Avergae (moving) Cost
I