Reference no: EM131591747

Question - Henry's House of Fashions uses a perpetual inventory system. It recorded the following purchases and sales transactions in June:

Cost of goods available for sale

Date		Units	Unit Cost
June 1	Beg. Inventory	10	$91
3	Purchases	15	$106
17	Purchases	20	$115
28	Purchases	10	$119

Retail sales of goods

Date		Units	Unit price
June 17	Sales	20	$130
30	Sales	23	$150

Required:

1. Compute both the cost of goods available for sale and the number of units available for sale.

2. Compute the number of units remaining in the ending inventory.

3. Compute the cost assigned to the ending inventory and cost of goods sold using:

a. FIFO and

b. Weighted average

Show your calculations clearly by using a table for each date, as indicated above.

4. If costs are declining, will the weighted average or FIFO method of inventory valuation yield the lower cost of goods sold? Why?