Homework answers / question archive / Use the following information about Acme Co's inventory and purchases during October, to answer a & b

Use the following information about Acme Co's inventory and purchases during October, to answer a & b

Accounting

Share With

Use the following information about Acme Co's inventory and purchases during October, to answer a & b.

October                                  Units                      Unit Costs 

1   Beginning Balance             35                           3

6   Purchase                           70                           4

11  Purchase                         45                            5

16 Purchase                         50                             6                                                                                 

In addition, be advised that Acme uses the periodic inventory system and sold 149 units during October

a. Calculate Ending Inventory and the Cost of Goods Sold using the FIFO method. [1 mark] 

b. Calculate Goods Available for Sale and Cost of Goods Sold using the Average Cost {AC) method. [1 mark]