The Petrowski Company Uses the Perpetual Inventory System Determine the Cost of Goods Sold for January Using the Company

question 12

Essay

The Petrowski Company uses the perpetual inventory system. The Petrowski Company has the following data available for the month of January:
$$\begin{array} { | l | l | l | l | } \hline \text { Date } & \text { Transaction } & \text { Units } & \text { Unit Cost } \\\hline \text { Jan. 1 } & \text { Beginning inventory } & 100 & \$ 100 \\\hline \text { Jan. } 9 & \text { Purchase } & 300 & \$ 120 \\\hline \text { Jan. } 10 & \text { Sale } & 200 & \\\hline \text { Jan. } 15 & \text { Purchase } & 400 & \$ 140 \\\hline \text { Jan. } 18 & \text { Sale } & 300 & \\\hline \text { Jan. } 24 & \text { Purchase } & 100 & \$ 160 \\\hline \text { Jan. 30 } & \text { Sale } & 10 & \\\hline\end{array}$$
Determine the Cost of Goods Sold for January using the following methods:
a. FIFO
b. LIFO
c. Moving-average (Round per unit costs and all other dollar amounts to two decimal places.)

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Definitions:

Disposable Income

The leftover money for households to use in savings and for buying things, once income taxes have been considered.

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income, indicating how changes in income affect spending.

Consumption Function

A financial equation that depicts the correlation between overall spending and gross national income.

Consumer Expectations

Consumer Expectations refer to the perceptions and predictions of future financial conditions or performances, which influence consumer behavior in the economy.