Question

Question 2 View Policies Current Attempt in Progress You have the following information for Marigold Corp. for the month ended October 31, 2022. Marigold uses a periodic method for inventory Unit Cost or Selling Price Units 55 Date Description Oct 1 Beginning inventory Oct 9 Purchase Oct. 11 Sale Oct 17 Purchase Oct 22 Sale Oct. 25 Purchase Oct. 29 Sale Calculate the weighted average cost. (Round answer to 3 decimal places, e... 5.125.) Weighted average cost per units e Textbook and Media List of Accounts

Answer 1

Ans.	*Calculations for Average cost per unit:
	Available for sale
	Date		Units	Rate	Total
	01-Oct		55	$26.00	$1,430
	09-Oct		140	$28.00	$3,920
	17-Oct		100	$29.00	$2,900
	25-Oct		65	$31.00	$2,015
	Cost of goods available for sale		360		$10,265
	Average cost per unit =   Total cost of goods available for sale / Total units available
	$10,265 / 360
	$28.514	per unit
Ans.	Calculations for Ending inventory, cost of goods sold, gross profit and gross profit rate:
	Units sold   (100 + 55 + 110) = 265 units
	Ending inventory units = Units available for sale - Total units sold
	360 - 265
	95 units
a	Periodic LIFO:
	Date	Units	Rate	Total
	01-Oct	55	$26.00	$1,430
	09-Oct	40	$28.00	$1,120
	Ending inventory	95		$2,550
	Cost of goods sold = Total cost of goods available for sale - Ending inventory
	$10,265 - $2,550
	$7,715
	*In LIFO method the units that have purchased last, are released the first one and the ending inventory
	units remain from the first purchases.
b	Periodic FIFO:
	Date	Units	Rate	Total
	25-Oct	65	$31.00	$2,015
	17-Oct	30	$29.00	$870
	Ending inventory	95		$2,885
	Cost of goods sold = Total cost of goods available for sale - Ending inventory
	$10,265 - $2,885
	$7,380
	*In FIFO method the units that have purchased first (earliest), are released the first one and the ending inventory
	units remain from the last (recent) purchases.
c	Weighted average cost:
	Ending inventory =   Average cost per unit * Ending inventory units
		$28.514 *95
		$2,709
	Cost of goods sold = Total cost of goods available for sale - Ending inventory
	$10,265 - $2,709
	$7,556
			LIFO	FIFO	Weighted average
	Sales		$12,750	$12,750	$12,750
	(-) Cost of goods sold		-7715	-7380	-$7,556
	Gross profit		$5,035	$5,370	$5,194
	Gross profit rate		39.5%	42.1%	40.7%
	Gross profit rate = Gross profit / Sales * 100
	*Calculation of sales:
	Date	Units	Rate	Cost
	11-Oct	100	$45.00	$4,500
	22-Oct	55	$50.00	$2,750
	29-Oct	110	$50.00	$5,500
	Total sales			$12,750