Question - BBM Enterprise Ltd ("BBM") had a beginning inventory balance that consisted of 200 units costing $18 per unit. Purchases and sales are shown in the schedule for the month of March. At the end of the month, BBM conducted a physical count of inventory and confirmed that 250 units were actually on hand at the end of the month. The company uses the periodic inventory system.
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Transaction
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No. of units.
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Unit Cost
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1 Mar
|
Beginning inventory
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200
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$18.00
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7 mar
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Purchased
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300
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$24.00
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10 Mar
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Sold
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350
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|
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18 Mar
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Purchased
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400
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$25.50
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24 Mar
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Sold
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300
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Required: Compute and determine the cost of ending inventory and cost of goods sold for the month of March using the following methods.
(i) FIFO.
(ii) Weighted average.