Rayleigh Corporation, Which Uses a Perpetual Inventory System, Recorded the Following

question 40

Essay

Rayleigh Corporation, which uses a perpetual inventory system, recorded the following inventory transactions during the last two months of 2018: Instructions
a. Using the FIFO cost formula, calculate the cost of goods sold for the two months of November and December. Show calculations.
b. Using the average cost formula, calculate the ending inventory at December 31. Show calculations and use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.

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Definitions:

Mediastinum

The medial compartment of the thoracic cavity, situated between the lungs, containing the heart, thymus, esophagus, trachea, and major blood vessels.

Esophagus

A muscular tube that conveys food and liquids from the mouth to the stomach.

Thoracic Cavity

A large body cavity in humans and many animals that houses the lungs and heart, among other organs, located between the neck and the abdomen.

Sternum

A long, flat bone located in the central part of the chest, connecting the rib bones and supporting the collar bone.