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Homework answers / question archive / Gross profit comparisons and cost flow assumptions—perpetual L02, 3  Ontario Skateboard Company has the following inventory and purchases during the fiscal year ended December 31, 2020

Gross profit comparisons and cost flow assumptions—perpetual L02, 3  Ontario Skateboard Company has the following inventory and purchases during the fiscal year ended December 31, 2020

Accounting

Gross profit comparisons and cost flow assumptions—perpetual L02, 3 
Ontario Skateboard Company has the following inventory and purchases during the fiscal year ended December 31, 2020. 
Beginning Inventory 289 units @ $ 79/unit March 10 purchased 210 units @ $ 82/unit March 20 sold 405 units @ $ 165/unit May 13 purchased 302 units @ $ 76/unit August 5 purchased 281 units @ $ 70/unit September 10 sold 500 units @ $ 165/unit 
Ontario Skateboard Company employs a perpetual inventory system. 
Required: 1. Calculate the dollar value of ending inventory and cost of goods sold using: (Do not round intermediate calculations. Round the final answers to 2 decimal places. Round weighted average all unit costs to two decimal places.) 
 

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FIFO Method:                
Date Goods available for Sale Cost of Goods Sold   Inventory Balance  
  Number of Units Cost per Unit Total Cost Number of Units Cost per Unit Total Cost Number of Units Cost per Unit Total Cost
Mar-01             289 $79  $22,831 
Mar-10 210 $82  $17,220        289 $79  $22,831 
              210 $82  $17,220 
Mar-20       289 $79  $22,831       
        116 $82  $9,512  94 $82  $7,708 
May-13 302 $76  $22,952        94 $82  $7,708 
              302 $76  $22,952 
Aug-05 281 $79  $22,199        94 $82  $7,708 
              302 $76  $22,952 
              281 $79  $22,199 
Sep-10       94 $82  $7,708       
        302 $76  $22,952       
        104 $79  $8,216  177 $79  $13,983 
Total       905   71219 177 $79  $13,983 

So, 

Cost of Goods Sold is $71,219 and Value of Ending Inventory is $13,983.

 

Moving Average Method:              
Date Goods available for Sale Cost of Goods Sold   Inventory Balance  
  Number of Unit Cost per Unit Total Cost Number of Unit Cost per Unit Total Cost Number of Unit Cost per Unit Total Cost
Mar-01             289 $79  $22,831 
Mar-10 210 $82  $17,220        499 $80.26  $40,051 
Mar-20       405 $80.26  $32,506.32  94 $80.26  $7,544.68 
May-13 302 $76  $22,952        396 $77.01  $30,496.68 
Aug-05 281 $70  $19,670        677 $74.10  $50,166.68 
Sep-10       500 $74.10  $37,050.72  177 $74.10  $13,115.96 
Total        905   69557.0445 177   $13,115.96 

 

So, 

Cost of Goods Sold is $69,557.04 and Value of Ending Inventory is $13,115.96.

 

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