Ask Question
1 September, 22:52

Beginning inventory, purchases, and sales for Product XCX are as follows:

Oct 01 Beginning Inventory 26 units $15

Oct 05 Sale 13 units

Oct 17 Purchase 20 units $16

Oct 30 Sale 18 units

Assuming a perpetual inventory system and the last-in, first-out method, determine (a) the cost of the merchandise sold for the October 30 sale and (b) the inventory on October 31.

a) Cost of merchandise sold $

b) Inventory, October 31 $

+2
Answers (1)
  1. 2 September, 01:59
    0
    Cost of merchandise sold = $483, Closing stock = $227

    Explanation:

    Perpetual inventory system includes updates done, when sale or purchase transaction happens

    Opening Stock = 26 units (price 15). Value = 26 x 15 = 390

    Sale = 13 units, price 15. So, sales cost value = 13 x 15 = 195

    Purchase = 20 units (price 16). Value = 20 x 16 = 320

    Sale = 18 units, price 16. So, sales cost value = 18 x 16 = 288

    Total sales cost value, or cost of merchandise sold = 195 + 288 = 483

    Closing stock = Opening stock + purchase - sales cost

    = 390 + 320 - 483

    = $227
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Beginning inventory, purchases, and sales for Product XCX are as follows: Oct 01 Beginning Inventory 26 units $15 Oct 05 Sale 13 units Oct ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers