Connect has been selling cellular phones for the last five years. Its best-selling model is the E-PHONE. The following information pertains to the E-PHONE inventory for August 2020:
$$\begin{array} { | l | r | r | }
\hline & \text { Units } & \text { Unit cost } \
\hline \text { Opening inventory } & 4,000 & \$ 50 \
\hline \text { Purchase 1 } & 2,400 & 40 \
\hline \text { Sale 1 } & ( 1,800 ) & \
\hline \text { Purchase 2 } & 4,400 & 53 \
\hline \text { Sale 2 } & \underline { 4,200 } & \
\hline \text { Ending inventory } & \underline { 4,800 } \
\hline
\end{array}$$ Required:
a. If Connect uses the FIFO method under a periodic inventory system, what would be the cost of ending inventory for August 2020?
b. If Connect uses the weighted-average method under a periodic inventory system, what would be the cost of goods sold for August 2020?
c. If Connect uses the weighted-average method under a perpetual inventory system, what would be the cost of ending inventory for August 2020?

Question

Connect has been selling cellular phones for the last five years. Its best-selling model is the E-PHONE. The following information pertains to the E-PHONE inventory for August 2020:
 $$\begin{array} { | l | r | r | } 
\hline & \text { Units } & \text { Unit cost } \
\hline \text { Opening inventory } & 4,000 & \$ 50 \
\hline \text { Purchase 1 } & 2,400 & 40 \
\hline \text { Sale 1 } & ( 1,800 ) & \
\hline \text { Purchase 2 } & 4,400 & 53 \
\hline \text { Sale 2 } & \underline { 4,200 } & \
\hline \text { Ending inventory } & \underline { 4,800 } \
\hline
\end{array}$$ Required:
a. If Connect uses the FIFO method under a periodic inventory system, what would be the cost of ending inventory for August 2020?
b. If Connect uses the weighted-average method under a periodic inventory system, what would be the cost of goods sold for August 2020?
c. If Connect uses the weighted-average method under a perpetual inventory system, what would be the cost of ending inventory for August 2020?

Quizplus · Accepted Answer

The Answer of Connect has been selling cellular phones for the last five years. Its best-selling model is the E-PHONE. The following information pertains to the E-PHONE inventory for August 2020:
 $$\begin{array} { | l | r | r | } 
\hline & \text { Units } & \text { Unit cost } \
\hline \text { Opening inventory } & 4,000 & \$ 50 \
\hline \text { Purchase 1 } & 2,400 & 40 \
\hline \text { Sale 1 } & ( 1,800 ) & \
\hline \text { Purchase 2 } & 4,400 & 53 \
\hline \text { Sale 2 } & \underline { 4,200 } & \
\hline \text { Ending inventory } & \underline { 4,800 } \
\hline
\end{array}$$ Required:
a. If Connect uses the FIFO method under a periodic inventory system, what would be the cost of ending inventory for August 2020?
b. If Connect uses the weighted-average method under a periodic inventory system, what would be the cost of goods sold for August 2020?
c. If Connect uses the weighted-average method under a perpetual inventory system, what would be the cost of ending inventory for August 2020?

Connect Has Been Selling Cellular Phones for the Last Five