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7 Inventory Exercise

This document provides inventory data for a company over several dates in January. It asks to determine the ending inventory, cost of goods sold, and gross profit using the average-perpetual and average-periodic inventory costing methods. A second problem provides additional inventory data and asks to calculate the estimated cost of ending inventory.

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78 views2 pages

7 Inventory Exercise

This document provides inventory data for a company over several dates in January. It asks to determine the ending inventory, cost of goods sold, and gross profit using the average-perpetual and average-periodic inventory costing methods. A second problem provides additional inventory data and asks to calculate the estimated cost of ending inventory.

Uploaded by

arnoldmanullang3
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Practice Exercise 3 Inventory

The following data are from UD BISMA:


Date Desc. Q Cost/unit Price
1 Jan Beginning balance 60 135
5 Jan Sale 45 240
10 Jan Purchase 93 141
16 Jan Sale 81 240
20 Jan Purchase 120 150
29 Jan Sale 105 240

Instruction:
Determine Ending Inventory, Cost of goods sold, and gross profit using (1) Average – Perpetual and
(2) Average – Periodic.

Answer:
1. Average – Perpetual
Purchase Cost of Goods Sold Balance
Date
Unit Cost Total Unit Cost Total Unit
1 Jan
5 Jan
10 Jan
16 Jan
20 Jan
29 Jan
Total Total Total

Ending Inventory =...................................


Cost of goods sold =...................................
Gross profit =...................................

2. Average – Periodic
Unit Total Cost
Beginning balance
Purchase
Purchase
Goods available for sale
Average cost
Ending Inventory = ...................................
...................................
...................................
Cost of goods sold =...................................
...................................
...................................
Gross profit =...................................
A company that uses the retail method determines that inventory at retail prices is
Rp.675,000,000. If the cost to retail price ratio is 80%, what amount of inventory will be reported
in the financial statements?

Use the following data to determine the estimated cost of the ending inventory.
Sales (net) Rp1,500,000,000
Estimated gross profit rate 35%
Beginning inventory Rp180,000,000
Purchases (net) Rp1,200,000,000
Goods available for sale Rp1.380,000,000

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