Question

Brief Exercise 6A-4 The following is a record of Windsor Company's transactions for the month of May 2017 May 1 12 Balance 410 units @ $22 Purchase 570 units @ $25 May 10 20 Sale 300 units @ $39 Sale 510 units @ $39 Compute the cost of ending inventory using the moving-average method. (Round average cost per unit to 3 decimal places, Ending inventory $ LINK TO TEXT

Answer 1

Answer to Brief Exercise 6A-4:

Goods Purchased Cost of Goods Sold Inventory Balance Cost per Cost per Cost of Cost per Date Inventory #of units #of units #of units unit unit Goods Sold unit Balance 410 May 01 22.000 9020 May 10 300 22.000 6600 110 22.000 2420 May 12 570 25.000 110 22.000 2420 570 25.000 14250 Average 680 24.515 16670 May 20 510 24.515 12503 170 24.515 4167 Total 170 810 19103 4167

Answer to Brief Exercise 6A-3:

FIFO:

Goods Purchased Cost of Goods Sold Inventory Balance Cost per Cost per Date Cost per Cost of Inventory #of units #of units #of units Goods Sold unit unit unit Balance May 01 360 19.00 6840 19.00 110 2090 May 10 250 4750 19.00 Мay 12 620 27.00 110 19.00 2090 27.00 620 16740 May 20 110 19.00 2090 0 19.00 0 460 12420 160 27.00 4320 27.00 Total 160 820 19260 43 20

LIFO:

Goods Purchased Cost of Goods Sold Inventory Balance Date Cost per unit Cost per unit Cost of Cost per Inventory #of units #of units #of units Goods Sold unit Balance May 01 Мay 10 360 19.00 6840 250 19.00 4750 110 19.00 2090 May 12 620 27.00 110 19.00 2090 620 27.00 16740 110 2090 May 20 0 19.00 0 19.00 570 27.00 15390 50 27.00 1350 Total 820 20140 160 3440