Quiz # 13
Answer as required. Do not round your calculation until your final answer. Each item is worth 2 points.
PROBLEM I
Purchases and sales during a recent period for Perfume Co. were:
Purchases During the Period Sales During the Period
1st Purchase 500 units @ $2 1st Sale 600 units @ $7
2nd Purchase 1,000 units @ $3 2nd Sale 750 units @ $8
3rd Purchase 500 units @ $4 3rd Sale 500 units @ $9
4th Purchase 500 units @ $5 4th Sale 500 units @ $10
2,500 units 2,350 units
Beginning inventory was 100 units at $1 each.
1. What is the ending inventory if FIFO costing is used?
2. What is the cost per unit available for sale during the year when using the average cost method?
3. What is the ending inventory if weighted average costing is used?
4. What is the COGAS using FIFO?
5. What is the COGAS using the weighted average?
PROBLEM II
The Pistons Company had its entire inventory destroyed when a fire swept through the company’s warehouse.
Fortunately, the accounting records were locked in a fireproof safe and were not damaged. The following
information for the period up to the date of the fire was taken from the accounting records:
Sales $486,400
Purchases 295,000
