Question

Bonita Company reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 200 $3 $600 12 Purchase 400 6 2,400 23 Purchase 400 7 2,800 30 Inventory 50 Assume a sale of 500 units occurred on June 15 for a selling price of $8 and a sale of 450 units on June 27 for $9.

Your answer is correct. Calculate cost of goods available for sale. The cost of goods available for sale $ 5800

Your answer is incorrect. Try again. Calculate Moving-Average unit cost for June 1, 12, 15, 23 & 27. (Round answers to 3 decimal places, e.g. 2.525.) June 1 $ June 12 $ June 15 $ June 23 $ June 27 $

Your answer is incorrect. Try again. Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. (Round average-cost per unit to 3 decimal places, e.g. 12.520 and final answer to 0 decimal places, e.g. 1,250.) FIFO LIFO Moving-Average Cost The cost ending inventory $ $ $ The cost of goods sold $ $ $

Question Attempts: Unlimited

Answer 1

Correct Answer:

Cost of Goods Available for sale
	Units	Cost per unit	value
Beginning Inventory	200	$                         3.0	$                         600.0
Purchases	400	$                         6.0	$                     2,400.0
Purchases	400	$                         7.0	$                   2,800.00
Total	1000		$                         5,800

Moving average cost
	Inventory balance	Total cost	Average cost for each units
01-Jun	200	$              600.00	$           3.0
12-Jun	600	$          3,000.00	$           5.0
15-Jun	100	$              500.00	$           5.0
23-Jun	500	$          3,300.00	$           6.6
27-Jun	50	$              330.00	$           6.6

	FIFO	LIFO	Moving Average cost
Ending Inventory	$                        350	$                        150	$                             330
Cost of Goods Sold	$                     5,450	$                     5,650	$                         5,470

Working:

	FIFO
A	Total Units Available for sale			1000		$                  5,800
	Units Sold			950
	Ending Inventory Units			50
	Valuation
	Cost of Goods Sold		200		$                           3.00	$               600.00
			400		$                           6.00	$                  2,400
			350		$                          7.00	$            2,450.00
B	Cost of Goods Sold		950	units		$                  5,450
A-B	Ending Inventory		50	units		$                  350.0

	LIFO
A	Total Units Available for sale			1000		$                  5,800
	Units Sold			950
	Ending Inventory Units			50
	Valuation
	Cost of Goods Sold		400		$                           6.00	2,400.00
			100		$                           3.00	300.00
			400		$                           7.00	2,800.00
			50.00		$                           3.00	150.00
B	Cost of Goods Sold		950	units		$            5,650.00
A-B	Ending Inventory		50	units		$               150.00

	Weighted Average
A	Total Units Available for sale			1000		$            5,800.00
	Units Sold			3
	Ending Inventory Units			997
	Valuation
	Cost of Goods Sold		500		$                       5.0000	$            2,500.00
			450		$                       6.6000	$            2,970.00
B	Cost of Goods Sold		950	units		$            5,470.00
A-B	Ending Inventory		997	units		$               330.00

End of answer.

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