The following information relates to China CDs. China CDs uses the periodic inventory system to account for its inventory. The following information relates to the three-month period ending 31 March 2016. At 1 January 2016 beginning inventory was 1,000 CDs with an average cost price of $4 each. Units purchased Total cost of purchases $ Units sold Total sales $ January Sales 800 8,000 Purchases 800 3,600 February Sales 750 8,500 Purchases 1,200 6,000 March Sales ____ ____ 1,100 11,200 2,000 units $9,600 2,650 units $27,700 A physical stocktake counted 350 CDs on hand on 31 March 2016. Required: Using the periodic system, calculate the cost of the inventory of CDs on hand at 31 March 2016 using: 1.the weighted average method. 2.the first-in-first-out (FIFO) method
The following information relates to China CDs. China CDs uses the periodic inventory system to account for its inventory. The following information relates to the three-month period ending 31 March 2016. At 1 January 2016 beginning inventory was 1,000 CDs with an average cost price of $4 each.
|
|
|
Units purchased |
Total cost of purchases $ |
Units sold |
Total sales $ |
|
January |
Sales |
|
|
800 |
8,000 |
|
|
Purchases |
800 |
3,600 |
|
|
|
February |
Sales |
|
|
750 |
8,500 |
|
|
Purchases |
1,200 |
6,000 |
|
|
|
March |
Sales |
____ |
____ |
1,100 |
11,200 |
|
|
|
2,000 units |
$9,600 |
2,650 units |
$27,700 |
A physical stocktake counted 350 CDs on hand on 31 March 2016.
Required:
Using the periodic system, calculate the cost of the inventory of CDs on hand at 31 March 2016 using:
1.the weighted average method.
2.the first-in-first-out (FIFO) method
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