Calculate the cost of goods available for sale

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Overton Company uses a perpetual inventory system for its single product. Its beginning inventory, purchases and sales during calendar year 2021 follow.

Date

Activity

Units Acquired at Cost

Units Sold at Retail

Unit Inventory

Jan 1

Beg. Inventory

400 units @ $14 = $ 5,600

 

400 units

Jan 15

Sale

 

200 units @ $ 30

200 units

March 10

Purchase

200 units @ $ 15 = $ 3,000

 

400 units

April 1

Sale

 

200 units @ $ 30

200 units

May 9

Purchase

300 units @ $ 16 = $ 4,800

 

500 units

Sept 22

Purchase

250 units @ $ 20 = $ 5,000

 

750 units

Nov 1

Sale

 

300 units @ $ 35

450 units

Nov 28

Purchase

100 units @ $ 21 =$2,100

 

550 units

Totals

 

1,250 units              $ 20,500

700 units

 

 

 

Required

Calculate the cost of goods available for sale

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Calculate (a) ending inventory and (b) Cost of goods sold under the LIFO and AVCO inventory costing methods

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