Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Date Transactions Units Unit Cost Total Cost October 1 October 4 October 10 October 13 October 20 October 28 October 30 Beginning inventory Sale Purchase Sale Purchase Sale Purchase 6 4 5 3 4 7 7 $900   910   920   930   $ 5,400   4,550   3,680   6,510 $20,140 Required: 1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase. 2. Using FIFO, calculate ending inventory and cost of goods sold at October 31. 3. Using LIFO, calculate ending inventory and cost of goods sold at October 31. 4. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October.

Date Transactions Units Unit Cost Total Cost

October 1

October 4

October 10

October 13

October 20

October 28

October 30

Beginning inventory

Sale

Purchase

Sale

Purchase

Sale

Purchase

6

4

5

3

4

7

7

$900

 

910

 

920

 

930

 

$ 5,400

 

4,550

 

3,680

 

6,510

$20,140

Required:
1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.
2. Using FIFO, calculate ending inventory and cost of goods sold at October 31.
3. Using LIFO, calculate ending inventory and cost of goods sold at October 31.
4. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31.

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