{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# 3 - Question 3 Calculated cost of goods sold ending...

This preview shows pages 1–2. Sign up to view the full content.

Question:- 3. Calculated cost of goods sold, ending inventory, and inventory turnover ratio based on the following merchandise inventory transactions occurred during the month of May for the Super Star, Inc. 5/1/2009 inventory on hand was 2,000 units at \$10.00 each 5/9/2009 Sold 1,000 units at \$15.00 5/15/2009 Purchased 1,500 units at \$11.00 each 5/21/2009 Sold 1,250 units at \$14.00 each 5/29/2009 Purchased 3,000 units at \$9.00 Requirements: Assume Super Stars uses a periodic record-keeping system and compute the cost of goods sold monthly: Calculate cost of goods sold for the month ended May 31, 2009 based on each o the following methods: 1. FIFO 2. LIFO 3. Weighted Average Solution:- Computation of the following Given information Units rate Cost Opening inventory 2000 \$10 \$20,000 Purchases on 15th 1500 \$11 \$16,500 Purchases on 29th 3000 \$9 \$27,000 Sales 9th 1000 \$15 \$15,000 Sales 21st 1250 \$14 \$17,500 Ending inventory 4250 units Computation of Cost of Goods sold 1. FIFO Opening Inventory \$20,000 Add;- Purchases \$43,500 Less:- Closing Inventory \$40,750 COSG \$22,750 2. LIFO Opening Inventory \$20,000 Add;- Purchases \$43,500 Less:- Closing Inventory \$43,250 COSG \$20,250 3. Weighted Average

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 3

3 - Question 3 Calculated cost of goods sold ending...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online