Calculating the : Perpetual Method
Consider the following inventory data for the first two months of the year for CompX International:
|
|
Total Units
|
Unit Cost
|
Total Cost
|
|
Beginning inventory on hand
|
|
|
January 1
|
60,000
|
$2.00
|
$120,000
|
|
Purchases during month
|
|
|
January 5
|
103,600
|
2.00
|
207,200
|
|
January 20
|
293,900
|
2.10
|
617,190
|
|
|
457,500
|
|
$944,390
|
|
Sales of inventory
|
|
|
January 25
|
383,900
|
|
|
|
Beginning inventory at
|
|
|
February 1
|
73,600
|
|
|
|
Purchases during month
|
|
|
February 8
|
282,200
|
2.20
|
$620,840
|
|
February 23
|
153,500
|
2.60
|
399,100
|
|
|
509,300
|
|
|
|
Sales of inventory
|
|
|
February 27
|
407,600
|
|
|
|
Ending Inventory
|
101,700
|
|
|
Required
1. Calculate the cost of goods sold and ending inventory for January and February under each of the following methods, assuming use of a perpetual inventory management system. Round all answers to the nearest whole number.
2. Assume that the replacement cost of CompX International's ending inventory is $2.05 per unit on January 30 and $2.35 per unit on February 28. Calculate the value of the ending inventory for January and February under each of the following methods. Round all answers to the nearest whole number.