Gross profit comparisons and cost flow assumptions—perpetual L02, 3 Ontario Skateboard Company has the following

Question

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.)

Help In Homework · Accepted Answer

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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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

Expert Solution

Archived Solution

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

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