Inventory Flow Assumptions
Flat TV Uses a Perpetual Inventory System

question 86

Essay

Inventory flow assumptions
Flat TV uses a perpetual inventory system. Shown below are Flat TV's beginning inventory of a particular product and purchases during January:
$$\begin{array} { | l | l | r | r | r | } \hline & & \text { Quantity } & \text { Unit Cost (\$) } & \text { Total Cost (\$) } \\\hline 1 \text { Jan } & \text { Beginning irventory } & 6 & 1,950 & 11,700 \\\hline \text { 6 Jan} & \text { Purchases } & 12 & 2,250 & 27,000 \\\hline \text { 25 Jan} & \text { Purchases } & \underline { 12 } & 2,300 & \underline { 27,600 } \\\hline & \text { Total } & \underline { 30 } & & \underline { 66,300 } \\\hline\end{array}$$ On 23 January (prior to the purchase on 25 January), Flat TV sold 13 units of this product.
Determine the cost of goods sold relating to the sale on 23 January under each of the following flow assumptions. (Show your computations.)
(a) FIFO $__________________
(b) Weighted average cost (or moving average) $______________

---

Definitions:

Centrist Judges

Judges who hold moderate views, often seen as impartial and not strongly aligned with either political left or right ideologies.

Food Critics

Individuals who evaluate the quality and taste of food and dining experiences, often writing reviews for publications.

Disguises

Items or actions designed to conceal the identity or appearance of someone or something.

Paralyzed

A state of inability to move or feel all or part of the body, often due to damage to the nervous system.