Question

Headlands Industries uses a periodic inventory system and reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 120 $5 $ 600 12 Purchases 390 6 2,340 23 Purchases 190 7 1,330 30 Inventory 235

Calculate weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average unit cost $enter a weighted-average unit cost in dollars

Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO Average-cost The cost of the ending inventory $enter a dollar amount $enter a dollar amount $enter a dollar amount The cost of goods sold $enter a dollar amount $enter a dollar amount $enter a dollar amount

Answer 1

Date	Units	Unit cost	Total cost
June 1	120	5	600
12	390	6	2340
23	190	7	1330
Total	700		4270
1
Weighted-average unit cost	6.100	=4270/700
2
FIFO:
The cost of the ending inventory	1600	=(190*7)+(235-190)*6
The cost of goods sold	2670	=4270-1600
LIFO:
The cost of the ending inventory	1290	=(120*5)+(235-120)*6
The cost of goods sold	2980	=4270-1290
Average-cost:
The cost of the ending inventory	1434	=235*6.10
The cost of goods sold	2836 or 2837	=4270-1434