Grays Company has inventory of 19 units at a cost of $7 each on August 1. On August 3, it purchased
29 units at $9 each. 21 units are sold on August 6. Using the FIFO perpetual inventory method, what amount will be reported in cost of goods sold for the 21 units that were sold?
Also calculate the COGS and the value of inventory using WAC method.
ji mai Monday Tuesday nu school ni auna ji
Answers
Answer:
the company has inventory of units is 3
Given : Grays Company has inventory of
19 units at a cost of $7 each on August 1.
On August 3, it purchased 29 units at $9 each.
21 units are sold on August 6.
Use the FIFO perpetual inventory method,
To Find : amount will be reported in cost of goods sold for the 21 units that were sold?
Also calculate the COGS and the value of inventory using WAC method.
Solution:
FIFO - First in First Out
COGS - Cost of Goods Sold
WAC Weighted Average Cost Method
19 units at a cost of $7 each on August 1.
On August 3, it purchased 29 units at $9 each.
21 units are sold on August 6.
Using FIFI
19 units sold , in inventory on on August 1. and 2 units sold purchased on Aug 3
Cost of Goods Sold = 19 * 7 + 2 * 9
= 133 + 18
= 151 $
cost of goods sold for the 21 units using FIFO = 151 $
value of inventory before sale using WAC method = 19 * 7 + 29 * 9 = 133 + 261
= 394 $
Total Units = 19 + 29 = 48
Cost of Goods Sold using WAC method
= 21 ( 394 )/(48)
= 21 * ( 133 + 261)/ 48
= 172.375 $
Value of inventory left = 394 - 172.375 = 221.625 $
Learn More:
The following information is provided by a dealer in computer chips ...
https://brainly.in/question/9870116
The following information is provided by a dealer in computer chips ...
https://brainly.in/question/9903618