Question - 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.
05/01/09 inventory on hand was 2,000 units at $10.00 each
05/09/09 Sold 1,000 units at $15.00
05/15/09 Purchased 1,500 units at $11.00 each
05/21/09 Sold 1,250 units at $14.00 each
05/29/09 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:
A. 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
B. Compute the ending inventory at May 31, 2009 using each of the following above methods
C. Compute the inventory turnover ratio based on each of the above inventory methods.
D. Compute the number of days for inventory turnover based on the above inventory methods and computations.