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Cheers Cameras Ltd records its inventory of digital cameras by using a perpetual inventory system on a FIFO basis.

Cheers Cameras Ltd records its inventory of digital cameras by using a perpetual inventory system on a FIFO basis. The following details are supplied for one particular popular make and model for the month of November. Ignore GST.


Nov. 1

Purchases:

Nov. 2 Nov. 20 Nov. 25 Sales: Nov. 4 Nov. 22 Nov. 29 Required

Inventory on hand consisted of 18 cameras costed at $150 each.

10 cameras at $140 each 20 cameras at $155 each 30 cameras at $148 each

16 cameras at $280 each 22 cameras at $280 each 20 cameras at $300 each

  1. Prepare an inventory record showing the above transactions. 
  2. Assuming instead that the company uses the moving average method of recording cost of sales, calculate the cost of sales and ending inventory balance for the month of November and compare your answers with those from requirement A. 

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