Sam's Corner Store Has the Following Purchase and Sales Information

question 113

Essay

Sam's Corner Store has the following purchase and sales information for one of their inventory items: $\begin{array} { | l | l | c | c | c | } \hline { \text { Date } } && \text { Units } & \$ \text { Unit } & \text { Total } \\\hline \text { Feb 1 } & \text { Opening inventory } & 10 & \$ 8 & \$ 80 \\\hline \text { Feb 9 } & \text { Purchase } & 25 & \$ 9 & \$ 225 \\\hline \text { Feb 15 } & \text { Sale } & 15 & \$ 15 & \$ 225 \\\hline \text { Feb 17 } & \text { Purchase } & 20 & \$ 11 & \$ 220 \\\hline \text { Feb 25 } & \text { Sale } & 10 & \$ 16 & \$ 160 \\\hline\end{array}$ Required:
For (a)and (b)assume the company uses the periodic inventory system.
(a)Calculate the gross profit if the company uses first-in, first-out (FIFO)
(b)Calculate the value of the ending inventory if the company uses weighted average.
For (c)and (d)assume the company uses the perpetual inventory system.
(c)What is the cost of goods sold for the Feb 25 sale if the company uses weighted average to cost the inventory?
(d)What is the value of the ending inventory if the company uses FIFO?

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