Question

Headlands Industries uses a periodic inventory system. Its records show the following for the month of May, in which 77 units were sold. Date Explanation Units Unit Cost Total Cost May 1 Inventory 34 $10 $340 15 Purchase 26 11 286 24 Purchase 40 12 480 Total 100 $1,106

Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average unit cost $Enter the Weighted-average unit cost in dollars LINK TO TEXT LINK TO VIDEO

Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST The ending inventory at May 31 $Enter a dollar amount $Enter a dollar amount $Enter a dollar amount

Answer 1

Solution:

1) Weighted-average unit cost: Total Cost / No. of units = $1106 / 100 = $11.06

2) Ending invemtory = Beginning inventory + Purchases - Sales = 34+26+40-77 = 23

FIFO: Ending inventory: 23 * $10 = $230

LIFO: Ending inventory: 23* $12 = $276

Weighted average: 23 * $11.06 = $254.38