I’ve received incorrect answers for this question, for 3A and 3C, my original answer for cost of goods sold was 61,400. ive updated to 61,680 is this correct?
Question 3
POI Pty. Ltd. purchases comic books from publishers and resells them to customers. The company has a perpetual inventory system and assigns the cost of goods sold on a FIFO basis.
The company has the following records for the financial year 2016/17:
All figures exclude GST.
| Inventory on hand 1 July 2016 | 1200 units @ $20 per unit |
| Purchases made during the financial year: | |
| 10/7/16 | 600 units @ $15 per unit |
| 12/9/16 | 200 units @ $23 per unit |
| 22/12/16 | 1400 units @ $16 per unit |
| 3/2/17 | 400 units @ $14 per unit |
| 5/5/17 | 100 units @ $22 per unit |
| Sales made during the financial year: | |
| 15/7/16 | 1000 units sold |
| 20/10/16 | 900 units sold |
| 1/1/17 | 1400 units sold |
| 3/4/17 | 200 units sold |
| Stocktake on 30 June 2017 | 20 units damages and written off |
Required:
Read the pdf document titled “Hints when using Excel” and use the Excel spreadsheet titled “POI Pty Ltd Stock Ledger Card Template” (both of which can be found in the LMS), to calculate the following:
You are required to upload your completed Excel Spreadsheet titled “POI Pty Ltd Stock Ledger Card Template” when you upload this assignment.
3a. Calculate: (refer to your completed Excel spreadsheet).
| Cost of Goods Sold using perpetual FIFO method | $61,680 |
| Closing inventory using perpetual FIFO method | $6,120 |
3b. Calculate: (refer to your completed Excel spreadsheet).
| Average inventory (simplified) = (Opening inventory + Closing inventory) / 2 (show your workings): |
| = (24,000 + 6,120)/2 = $15,060 |
3c. Calculate: the inventory turnover ratio.
| Inventory Turnover Ratio = COGS / Average Inventory (show your workings): |
| = 61,680/15,060 = 4.096 |
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