CASE NO#2- INVENTORY VALUATION METHODS COSTCO, a chain of "general merchandise stores" (or hypermarket) and...
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Accounting
CASE NO#2- INVENTORY VALUATION METHODS
COSTCO, a chain of "general merchandise stores" (or hypermarket) and one of the largest of its type in USA. The company follows Perpetual Inventory System.
The company furnishes the following information for the month of December 2022:
Date
Description
Quantity
Unit cost (OMR)
December 1
Beginning Inventory
11,500
10
December 5
Purchase
14,500
13
December 6
Issues/Sales
11,200
December 8
Purchase
13,300
14
December 10
Purchase
14,500
12
December 14
Issues/Sales
12,300
December 20
Purchase
11,600
16
December 22
Purchase
11,300
7
December 24
Issues/Sales
1,500
December 29
Issues/Sales
1,300
December 30
Purchase
1,650
11
December 31
Purchase
11,000
10
You are required to:
Compute the cost of goods sold and closing inventory value under FIFO and Weighted Average Method using periodic inventory system.
Identify necessary journal entries for the above purchase and sales of Merchandise Inventory under FIFO and Weighted Average method
Answer & Explanation
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