During August, BP Company sold 850 units of Product G. The beginning inventory and purchases during the month are below.
Assignment Template attached below.
| August 1 |
|
Beginning Inventory Balance |
150 units @ $2.00 |
| August 5 |
|
Purchase |
300 units @ $2.50 |
| August 10 |
|
Purchase |
200 units @ $2.75 |
| August 25 |
|
Purchase |
250 units @ $2.80 |
| August 30 |
|
Purchase |
100 units @ $2.80 |
The following sales were made during August.
| August 4 |
Sales |
130 units @ $10 |
| August 6 |
Sales |
300 units @ $10 |
| August 13 |
Sales |
180 units @ $10 |
| August 28 |
Sales |
240 units @ $10 |
Required: Using the perpetual inventory system, compute the following amounts. Place your answers in the template provided below.
- Compute the total units available for sale.
- Compute the total cost of the units available for sale.
- Compute the cost of goods sold using the FIFO method.
- Compute the ending inventory using the FIFO method.
- Compute the cost of goods sold using the LIFO method.
- Compute the ending inventory using the LIFO method.
- Compute the cost of goods sold using the moving average method, round both total dollars and dollars per unit to the nearest cent.
- Compute the ending inventory using the moving average method, round both total dollars and dollars per unit to the nearest cent.
- For each method, what numbers do you get when you add the cost of goods sold and ending inventory together for both units and dollars?
Instructions:
Complete this assignment using an Excel spreadsheet, and date and explain each entry on your deliverable.