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Question - JFK Appliance Shop Inc. provides following data for inventory, purchases, and sales of merchandise for July for one of the items the company sells:
Activity Number of Units Total Cost Sale Price (per unit) Beginning Inventory 68 $5,780 Purchase 1: July. 5 54 $4,968 Sale 1: July. 8 47 $120.00 Sale 2: July. 12 23 $140.00 Purchase 2: July. 17 18 $1,692 Sale 3: July. 23 32 $150.00 JFK uses a perpetual inventory system, and all purchases and sales were for cash.
Required - Compute cost of goods sold (COGS) and cost of ending inventory using each method.
a) FIFO.
b) Weighted-average method.
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