Question:
Sandra's Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October 2012.
Date Transactions Units Cost per Unit Total Cost
October 1 Beginning inventory 6 $800 $ 4,800
October 4 Sale 4
October 10 Purchase 5 810 4,050
October 13 Sale 3
October 20 Purchase 4 820 3,280
October 28 Sale 7
October 30 Purchase 6 830 4,980
$17,110
Required:
1. Calculate ending inventory and cost of goods sold at october 31, 2012 using the specific identification method. The October 4th sales consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.
2. Using FIFO, calculate ending inventory and Cost of goods sold on 10/31/12
3. Using LIFO, calculate ending inventory and cost of goods sold on 10/31/12
4. Using weighted - average cost, calculate ending inventory and cost of goods sold at October 31, 2012