Problem
Peter Limited manages its inventory using the perpetual inventory control system. The inventory manager provides the relevant inventory details in Table 1 below.
Table 1. Inventory under Perpetual Inventory Control System - Peter Limited
|
Description
|
Units
|
Cost
|
Price
|
|
Opening Inventory
|
44 444
|
3
|
|
|
Purchases during the period
|
377 778
|
3
|
|
|
Sales during the period
|
384 444
|
|
8
|
|
Closing Inventory
|
31 111
|
3
|
|
Task
A. Based on the above information, calculate the cost of goods sold under the existing inventory control system.
B. Further, calculate the cost of goods sold under the periodic inventory control system.