Question Details

Hoyt Company's inventory records show the following data for the month 



1
Linville Company had beginning inventory on May 1 of €12,000. During the month, the company made purchases of €30,000 but returned €2,000 of goods because they were defective. At the end of the month, the inventory on hand was valued at €9,500.

Calculate cost of goods available for sale and cost of goods sold for the month.

Solution 1(4 min.)
Beginning inventory	€12,000
Net purchases (€30,000 - €2,000)	+28,000
Goods available for sale	€40,000
Ending inventory	 - 9,500
Cost of goods sold	€30,500

2
Hoyt Company's inventory records show the following data for the month of September:
		Units	Unit Cost
Inventory, September 1	100	$3.00
Purchases:	September 8	450	3.50
	September 18	300	3.70

	A physical inventory on September 30 shows 250 units on hand. Calculate the value of ending inventory and cost of goods sold if the company uses FIFO inventory costing and a periodic inventory system.




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