chapter 06 homework 415239

Sandra’s Purse Boutique has the following transactions related to its top selling Gucci purse for the month of October 2012. Sandra’s Purse Boutique uses a periodic inventory system.

Date Transactions Units Cost per Unit Total Cost

October 1 Beginning inventory 8 $760 $ 6,080

October 4 Sale 4

October 10 Purchase 7 770 5,390

October 13 Sale 5

October 20 Purchase 6 780 4 ,680

October 28 Sale 9

October 30 Purchase 8 790 6,320

$22,470

1. Calculate ending inventory and cost of goods sold at October 31, 2012, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of 1 purse from beginning inventory and 4 purses from the October 10 purchase, and the October 28 sale consists of 3 purses from the October 10 purchase and 6 purses from the October 20 purchase. (Omit the “$” sign in your response.)

2. Using FIFO, calculate ending inventory and cost of goods sold at October 31, 2012. (Omit the “$” sign in your response.)

3. Using LIFO, calculate ending inventory and cost of goods sold at October 31, 2012. (Omit the “$” sign in your response.)

4. Using weighted average cost, calculate ending inventory and cost of goods sold at October 31, 2012. (Round the weighted average cost per unit to 2 decimal places. Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)