Inventory Flow Assumptions
Arrow, Inc On 24 January 2013, Arrow Sold 65 Units of This

question 39

Essay

Inventory flow assumptions
Arrow, Inc. uses a perpetual inventory system. On 22 January 2013, the company had 200 units of a particular product on hand, with a total cost of $2,400. The per-unit costs were:
$$\begin{array} { | l | c | c | c | } \hline { \text { Date } } & \begin{array} { c } \text { Purchase } \\\text { Quanitity }\end{array} & \begin{array} { c } \text { Unit Cost } \\( \$ )\end{array} & \begin{array} { c } \text { Total Cost } \\( \$ )\end{array} \\\hline \text { Erdirg invertory, 2009 } & 50 & 9 & 450 \\\hline \text { 10 Jan purchase } & \underline { 150 } & 13 & \underline { 1,950 } \\\hline \text { Total on hand } & \underline { 200 } & & \underline { 2,400 } \\\hline\end{array}$$ On 24 January 2013, Arrow sold 65 units of this product.
Using the two cost flow assumptions listed below, compute (1) the cost of goods sold, and (2) the cost of the inventory of this product on hand after this sale. Show your computations.
(c) Weighted average cost method
(d) FIFO

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