5. Resourceful Books has the following transactions in August related to merchandise inventory.
(Click the icon to view the transactions.)
Read the requirements.
a. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the specific identification method. Assume the following costing information for the books sold during the month:
August 3: 4 books costing $16 each
August 15: 6 books costing $16 each and 5 books costing $18 each
August 28: 2 books costing $18 each and 2 books costing $25 each
Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Purchases
Cost of Goods Sold
Inventory on Hand
Unit
Date
Quantity Cost
Total
Cost
Quantity
Unit
Total
Cost Cost
Unit
Quantity Cost
Total
Cost
Aug. 1
Totals
12
15
20
28
1 Requirements
X
Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the specific identification method. Assume the following costing information for the books sold during the month:
August 3: 4 books costing $16 each
August 15: 6 books costing $16 each and 5 books costing $18 each
August 28: 2 books costing $18 each and 2 books costing $25 each
Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the FIFO inventory costing method.
Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the LIFO inventory costing method.
Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the weighted-average inventory costing method. Round weighted average unit cost to the nearest cent and total cost to the nearest dollar.
Aug. 1 Beginning merchandise inventory, 12 books @ $16 each
3 Sold 4 books @ $20 each
12 Purchased 8 books @ $18 each
15 Sold 11 books @ $20 each
20 Purchased 3 books @ $25 each
28 Sold 4 books @ $22 each
Print
Done
Print
Done
