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ACCT 1211: Accounting / A55 Question 4 (25 marks) Sammy's Sportswear sells sport jerseys. It has a May 31, 2018 year end. On February 28, 2018, Sammy's Sportswear had in inventory of 40 jerseys that each cost $ 20. During the next 3 months, Sammy's Sportswear purchased the following merchandise: Units 50 March April May Unit Cost $ 30 $40 $50 Total $ 1,500 $ 4,000 $ 7,500 100 During March, April, and May, Sammy's Sportswear sold the following merchandise: Units Unit Selling Price March April May Total $3,600 $ 2,800 $ 8,100 Operating expenses for March, April, and May totalled $3,500. Sammy's Sportswear used a perpetual inventory system. Assume that monthly purchases occurred on the first day of each month. Required: A. Calculate Sammy's Sportswear's ending inventory at May 31, 2018 using the moving- weighted-average costing method and the FIFO costing method. B. Prepare Sammy's Sportswear's May 31, 2018 income statement for both the moving weighted average costing method and the FIFO costing method. Record the gross margin and operating income 1 ZUM Split to 100% New Window Page Width Allallye All Macros Switch Windows wursy Moving-Weighted-Average ITEM OTY 30 25.56 DATE 2018 28-Feb-18 1-March-18 March ,18 1-April-18 April 18 1-May-18 May,18 PURCHASES COST OF GOODS SOLD INVENTORY ON HAND UNIT TOTAL UNIT TOTAL UNIT TOTAL COSTCOST QTY COST COST QTY COST COST 800 1500 2,300 60 25.56 1,533.33 766.67 100 40 4000 130 4766.67 40 36.67 1,466.67 90 36.67 3300 150507500 240 10R00 45 4,050.00 150 6750 30 90 Cost of Goods Sold (COGS)-1,533.33+1,466.67+4,050.00=7050 FIFO ITEM INVENTORY ON PURCHASES COST OF GOODS SOLD HAND UNIT TOTAL UNIT TOTAL UNIT TOTAL OTY COSTCOST QTY COST COST OTY COST COST 50 1500 401 20 20 30 800.00 600.00 DATE 2018 28-Feb-18 1-Mar-18 1-Mar-18 Mar-18 Mar-18 1-Apr-18 1-Apr-18 Apr-18 Apr-18 1-May-18 1-May-18 May-18 40 100 8888 4000 900 900 4000 30 10 19 50 7500 3600 3600 7500 7500 9040 3600 Cost of Goods Sold 800+600+900+400+3600-6300 Focus - Multiple Pages Page Width Zoom to 100% Macros New Window Arrange Split All Switch Windows Cost of Goods Sold=800+600+900+400+3600 6300 Assignment 5 Sammy's Sportswear's Income Statement May 31, 2018

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